Speaking of Online Trading it is impossible not to mention the absolute most widely used technical indicators, moving averages. The choice of speed of moving averages has always been a headache for technical analysts. The problem is known, an average speed is too early, but it produces false signals, filters them, and a slower, but he reacts too late. As you know, a backtesting too accurate research aimed at moving averages that in the past have given the best signals is likely to lead to the so-called "curve-fitting" that is the effect of optimization so fitting for data from the past that it will be difficult for future ones.
The guidelines are directed to recent research of adaptive moving averages, which vary that is, their speed according to changes in volatility and cyclicality of the instruments with which they are applied.
It 'still confident that moving averages are the main indicators used for the study of graphic design and construction of automated systems. Their popularity is due to the easy implementation and immediate understanding of the mechanisms that govern its operation.
Often, especially in technical analysis, you ride the winding roads in search of oscillators infallible able to anticipate the trends and the result .... of such research in most cases is an indicator of difficult construction and even more difficult to understand that brings the trader away from his real goal: to create profits!
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