What are the best settings for moving averages?

The best settings for moving averages depend on several factors, including your trading style, the market you're trading in, and the time frame you're working with. Here are a few general guidelines:

1. Simple Moving Averages: Simple moving averages (SMAs) are a popular choice for day traders because they are easy to calculate and interpret. The most commonly used SMAs include the 5-day, 10-day, 20-day, and 50-day averages. These periods can be adjusted based on your trading strategy and market conditions.

2. Exponential Moving Averages: Exponential moving averages (EMAs) are similar to SMAs, but they place more weight on recent price data. EMAs can be faster than SMAs in detecting changes in momentum, making them well-suited for day trading. Common EMA periods include the 9-day, 18-day, 26-day, and 39-day averages.

3. Moving Average Convergence Divergence: Moving Average Convergence Divergence (MACD) is a momentum oscillator that uses both SMAs and EMAs. It helps identify changes in trend momentum and can be used to generate buy and sell signals. The MACD is calculated using a combination of a 26-day EMA and a 12-day EMA.

4. RSI: The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price changes to determine overbought or oversold conditions. It is not a moving average, but it is often used in conjunction with moving averages to confirm trend reversals.

Ultimately, the best settings for moving averages depend on your trading strategy, risk tolerance, and the specific market conditions. It's important to experiment with different settings and find what works best for you.