Question of the Week - Double Moving Average Bounce Settings

This week's question is about the double moving average bounce trading system:

hi..i'm interested in your double moving average bounce trading system..in the examples you uses the 1 - 5 min chart, my question is it can be used in the daily chart and if so how is the setting up of the values..thanks n looking forward for your reply

The double moving average bounce trading system can be used in any time frame (from scalping to monthly charts). The settings that are used (e.g. chart time frame, moving average lengths, target, stop loss, etc.) are dependent upon each traders' trading style and other trading factors (e.g. risk tolerance, etc.). For example, a trader that prefers making many small trades per day will use shorter length moving averages with smaller targets and stop losses, but a trader that prefers making one large trade every few days will use longer length moving averages with larger targets and stop losses.

The principles behind the moving average bounce trading system apply in every time frame, and the settings are therefore flexible and interchangeable. For example, shorter length moving averages (e.g. twenty and ten bar moving averages) can be used in both five minute and daily charts, and longer length moving averages (e.g. two hundred and one hundred bar moving averages) can also be used in both five minute and daily charts. Regardless of which chart time frame and moving average lengths are used, the double moving average bounce trading system is traded in exactly the same manner (as explained in the double moving average bounce tutorial).

I have created a gallery of example charts showing a variety of different double moving average bounce configurations and some of the trades that the configurations indicated. The charts are bar charts, with the longer length (i.e. the slow) moving average shown in dark blue, and the shorter length (i.e. the fast) moving average shown in light blue.