Question about TA

Hey, guys!


In your opinion, what is the best period for Moving Average, MACD lines/Histogram and RSI, using a 5 min chart?


Thanks a lot.

Guys...?

Anyone?

8,3,3 stochastic


20 ema and an 8 period ema on 5 minute chart


day session only data..newbies to trade short when 8 period ema is below 20 ema and use patience..long when above 20 ema

Hey, Bruce!

Thanks for your answer. Understood!


So, don't you use RSI and MACD Histogram?

I once used those settings long ago but don't use any indicators now....so you asked what were best.....


never did much with RSI or macd.....some like Rachkes 3/10 oscillator


here is one link of many u can find on it

http://blog.afraidtotrade.com/how-do-i-create-the-310-oscillator/

Thanks a lot!

Hi Canis Lupis,
I'm not a big proponent of trading price following mechanisms.
Moving averages, RSI, histograms, .... oscillators are price following mechanisms, which creates a disadvantage where professional traders are trading price, psychology of price (candlesticks), support / resistance, pivot points, techniques of intra-day trading like "fading" the Stretch, Fibonacci ratios of the Stretch, and Fibonacci price measuring objectives, e.g., on an intra-day basis. Have you ever had "an S&P minute"? (That's when a moving average crosses, like when an intra-day consolidation breaks out produces a signal, and then reverses in the opposite direction creating an immediate loss and a cross-over by the moving average, ... oscillators in the moving averages soon after.)

The equity indicies are mecurial, and what may work between earnings announcements, or the first Friday of each month, or the "window dressing" (yes, it sounds derogatory, .... last day and first four days of the month tend to be up), etc., may not work perform consistently from quarter-to-quarter.

Ken Shaleen (Chartwatch, Inc.) has a TECHNICAL ANALYSIS CHARACTERISTIC RELIABILITY INDEX (with more than 30 years of data to support this statement. He has written White Papers for the CBOT and other exchanges around the world), as well as taught technical analysis at brokerages, too around the world. Ken Shalleen said, "When technical analysis is applied to equity index futures, they tend to produce less than tradeable probabilities, e.g., the triangles... (78% or better)." The CME Group approached him to write about the e-mini $5 Dow futures. He told them, "You will not like the findings of my report."

Why am I getting into this trade?
Where am I getting into this trade?
Where is my target exit?
Where is my stop loss?
Make a plan. Trade a plan. And learn to manage your risk, as well as the brain damage caused by successive losses.

Hi, Hunter!

Thanks for your input.

Most of the time I trade based on resistance and suport lines in intraday chart and momentum trading.

I tend to look to EMA and MACD Histrogram also, however. But yes, many times buy or sell signals are useless...

So, in your opinion, I shouldn't use TA for E-Mini???