A Couple of Quick Questions

1) Should the 8 period moving average be a simple average, or an exponential average?

I started reading "The Market Maker's Edge" this week and the author recommends using the 8 period exponential moving average on the daily and smaller charts to determine the trend and which direction to trade. However, Gary says to only use simple moving averages because the exponential average weights the news too heavily.

I know that several of you are using the 8 period moving average. So, which do you use and why?

2) To those of you who are successfully trading intra-day, as we begin to transition to the fall trading zone, do you intend to move to bigger charts with longer trades; or will you continue with intra-day trades?

I do not use an 8 moving average on any chart although you can use an 8 rather than a 10. I would say the 8 would match better with the Fibonacci numbers.

My moving averages are 2,3,5,10,20,50, and 200 on all my charts except the E charts.

I use a 55 for my trades year 'round however to see if I will have good moves I look at the 233, and daily.

In the classes I took GW had said you can use the 55 for trading year 'round.

In this market a lot depends on me holding over night...such as sector, earnings announcement, how the charts are trending, gaps support or resistance as well as information on the stock. So holding over night or longer is not something I plan on. As I've said I like a daily paycheck.

Thank you for the feedback, Darcy. However, the question still remains, are you using exponential moving averages as called for in "Market Maker's Edge" or are you using simple moving averages as Gary says?

I use simple

Thanks, Darcy.

rufinatti,

I use the simple as well, but the 8 is a major indicator for me.

Thanks for the additional confirmation, Rookie.

Simple it is.