Quote from: StewartJ on January 22, 2012, 06:02:52 PM

Quote from: Goomboo on January 22, 2012, 05:38:38 PM

Quote from: kinghajj on January 22, 2012, 10:09:20 AM

Quote from: notme on January 22, 2012, 10:04:16 AM

http://bitcoincharts.com/charts/mtgoxUSD#rg2zigHourlyztgSza1gEMAzm1g10za2gEMAzm2g21

Ah, I've been looking at the 15-minute interval chart. I think this may be a false crossover, unless the volume starts increasing. There also seems to be little support above $6.20.

I'm wary of looking at smaller timeframes in the BTC market. My main issue is volume / the spread. Much of the trading / charting that happens on the lower timeframes in BTC is really just noise and difficult to follow. Also, if you take a trade, the spread is so large that your position may never make money, even if you were right as to the trend direction for the next few hours.

I was noticing the potentially low 15 minute interval in posters question.

Just to verify, the optimal chart your considering for viewing the moving 10/21 EMAs is a 5 Day/ 1 Hour chart, correct?

I noticed you mentioned the 10 Day / 1 hour chart, as well. Is that just as valid as the 5 Day chart?

Sorry for the confusion.

No worries, thanks for the questions!

The lookback period (5 / 10 day), doesn't particularly matter to me since that is just showing how much data is actually on the chart. Personally, I like a good amount of data on the chart so that I don't get caught up in the candle-to-candle battle for dominance. The moving averages are calculated based on the data (hourly / daily / 15-minute), so how much data you show on the chart is not terribly important.

I prefer the 1 hour chart because it allows me to have a trade for 2-3 days. It suits my risk appetite and my desire to participate in the trend. I consider this intermediate term trading while anything shorter I call short-term trading.

It really depends on what you are looking for. If you want to trade once every few weeks, then I'd use the daily chart to make your trading decisions.