Indicator under the trend ?

[piotras10000]

I have a question for experts, which of the indicators gives the best signal to read the upward and downward trend ???

[jstap]

@piotras10000 I suppose this is a personal choice, for me it would be a moving average, if price on candle 1 is > price on candle 10 then trend is on the way up. This is a simple way of looking at it, and different MA's and TF's will change this.

[piotras10000]

@jstap I am asking because I want to build an EA under bitcoin. I know that not all indicators give real buy and sell signals. Speaking of Moving Average, what period would you choose and on what chart?

[jstap]

@piotras10000 This depends on the TF your trading on, a 20 on the 1m will regularly go from buy to sell so could be used as a trigger, also exponential will react quicker to price, and a simple will act slower, a smoothed will act slower again, but this will change when you go from buy to sell so quicker will not necessarily be what you want, a 50 on the higher TF for example, will give you the medium term trend. What and how many you use will depend on your preferences and strategy, also you have candles <> 200MA, a common way of determining if buy or sell, normally done on 1h or above TF.

[piotras10000]

@jstap I think that EA should open an order on the h1 chart, because it will probably read the trend better and will be more effective and, above all, safe. I just don't know what period to choose for the EMA. You could give me hint?

[piotras10000]

@jstap If I uses the 200 EMA on the h1 chart, it how often will such a position be opened?

[jstap]

@piotras10000 This depends on the asset and timeframe but, will range from a few timesday to once every few months.

[piotras10000]

@jstap At least I thought about two position every day

[jstap]

@piotras10000 This is likely but it depends on the TF and asset.