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Day Trading/using 2 MAs for Daytrading - best Combination?


I am trading on MT4
I have an Indicator, what gives me Signals, pointing the Direction of the Assett, when the 2 choosen MAs are crossing

The basic Adjustment of this Indicator is MA 2 and MA 8 - generating too many false Signals

I adjusted to Fibonacci 13 and 34

what MAs would you recommend in the 15 M Timeframe?

Hi Martin,

Without knowing how the system works, it's a little difficult to know what moving averages would work best, so let's review the basics and let me offer a few ideas.

The larger the moving average, the less responsive it will be to recent price movements, giving you a smooth view of the average price over a given period of time. The drawback with moving averages that are too long, is that it might lag too much

A smaller moving average will be much more responsive, reacting to recent price movements. One drawback is that smaller moving averages can be TOO reactive to price, and as in your case give you false signals.

So the goal is to use a longer moving average that give a good representation of the trend, and a shorter moving average that will help generate signals.

The 2/8 cross probably generates way too many signals. Of course, if it was giving you good entries too many signals probably wouldn't be a problem. So based on your question and your current experiences, I'd encourage you to take a look at the following:

13/34 - Like you're using now, this is a popular combination. If you think the signals should be better, maybe try adding another filter, or try to see if it works best in certain markets, or certain times of the day.

10/21 - Another popular combination for intraday traders if you haven't already tried it.

I'm not sure if it's possible, but you might even see if you can add a longer moving average like the 50 period moving average to serve as a filter for the underlying trend, then use the cross for signals.

Remember that a strategy with signals won't work all of the time, and there will always be false signals. The key is finding a strategy/setup that works enough of the time to give you nice moves that are profitable with proper position sizing and risk management.

Hope this helps!

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Mark Hodge


Questions related to technical analysis, strategies, risk, trading plans, trading psychology and money management. Experience in trading all markets and time-frames with expertise in futures (e-minis, currencies, commodities) and equity options. Unfortunately I am not allowed to offer any specific trading advice (i.e. should I go long the E-mini S&P today).


I have been involved in the industry since 1995 working for Morgan Stanley Dean Witter and American Express Financial Advisors before becoming a full time trader. As Head Education Coach with Rockwell Trading I have coached hundreds of students around the world to achieve their trading goals with simple strategies, a sound trading plan and proper money management for the leveraged markets.

Currently serving as Rockwell Trading's Head Education Coach and moderator for Rockwell's Student Trading Room where we follow opportunities in the minis, interest rates, currency and grain markets daily.

Technical Analysis of Stocks & Commodities, "Day Trading With Volatility", June 2010 SFO Magazine, "Home on the Range: Lasso Trades Without Time", August 2010 SFO Magazine, "Day Trading Indicators, Part 1", January 2011 SFO Magazine, "Day Trading Indicators, Part 2", February 2011 SFO Magazine, "Technical Strategy", April 2011 SFO Magazine, "Advanced Trading Techniques - Futures Spread Trading", October 2011 Active Trader, "A Simple Day-Trading Strategy", November 2011 Marketplace Books, How to Trade Commodities: Simple Strategies for Gold and Crude That Traders Can Use in Any Market, June 2011

Formerly licensed as a financial advisor with Series 6, 7, and 63 licenses. B.A. in Organizational Communications with a Business Minor from California State University, Sacramento.

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