I am a day trader and I use moving averages to trade, I use high time frames moving averages in lower time frames charts. For example, I use the 20 periods SMA from daily chart in the 1 Hour chart. I do this by multiplying the number of periods of my high time frame MA by the number of bars from the lower time frame contained in the higher. So the 20 SMA in daily chart is equivalent to a 20 x 24 = 480 periods moving averages in hourly chart, because there are 24 hours a day.
My question is, the parameter "period" in the SMA is based internally in the time scale itself or it is based only in the number of bars ? If it is the former I am doing well with my 480 periods SMA in hourly chart; or if it is the latter, I will need to switch to a 460 SMA, since the markets are open only for 23 hours a day not 24 (so a daily bar contain just 23 hourly bars not 24 and 20 x 23 = 460).
Moreover, Is correct my approach on holidays when market closes early (12 pm CT for example, and a in those days I will have only 19 hourly bars in 1 daily bar) and I will get the correct daily moving average on my hourly chart ??
I hope I have explained myself well, and sorry for my bad english
regards
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