How to Choose the Proper “Length” of a Moving Average

[shanhasaranga]

The “length” or the number of reporting periods including the moving average calculation affects how the moving average is displayed on a price chart.

The shorter its “length”, the fewer the data points that are included in the moving average calculation, which means the closer the moving average stays to the current price.

 

[Daantje Pieters]

Many traders are making a consistent profit by applying a very profitable strategy in moving average trading. I use 200 moving averages. This average gives me the calculation of the market situation.

 

[hamza_jazzs]

i think there's no proper length u have to understand that there's short term MA, middle term MA and Long terme MA, that's all

 

[Sherverty]

There is really only one difference when it comes to EMA vs. SMA and it’s speed. The EMA moves much faster and it changes its direction earlier than the SMA. The EMA gives more weight to the most recent price action which means that when price changes direction, the EMA recognizes this sooner, while the SMA takes longer to turn when price turns.

 

[roy3421]

one length you must have on your chart is 200 ma or ema . this is used by hedge fund managers . basic rule is sell belo 200 ema and buy above 200 ema . also look for price action

 

[Xie Yuanjun]

You may decide by choosing the datasets that are most feasible for your current trading strategy. Too much of datasets may be misleading. Also too less may give you wrong predictions.

 

[megaquest]

The “length” or the number of reporting periods including the moving average calculation affects how the moving average is displayed on a price chart.

The shorter its “length”, the fewer the data points that are included in the moving average calculation, which means the closer the moving average stays to the current price.

I love the 200 and 50 MA