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I use the 50 day average just to determine the strength of an intermediate term trend. I view that trend as approximately four weeks in length. I don't know how the indicator would work if you took it down to 50 five minute periods.

On 5/5/03 I posted how I use the time above and the time below the 50 day moving average of an index in determining the strength of weakness of a market. Since then the time above the 50 day average for the S&P 500 has continued to expand. The next step in the indicator is to see how the...

Your best way to manage this is with a stop loss order and a journal. Use a stop loss to preserve capital. Use a journal to record what you saw that made you feel you had a breakout, ie was it the volume, the spead of the trades, the level, was it a key figure from yesterday's or last...

Keep a journal of each trade you enter. Record the reason why you entered the trade, what happened on the trade, and most importantly how you managed your money on your trade (how you used your stop loss). Constantly review your journal to see if there are events or trades you constantly won...

Indicators lag and respond to the market. If you use an indicator to trade you are waiting for a signal and then lagging the market on your entry and your exit. A trader will have more success if he watches the market, anticipates, enters the trade and controls any errors with stop losses.

In late March I mentioned how I used the time above and below the 50 day moving average as a guide to the technical strength of a stock or index. The S&P 500 Cash Index continues to expand its time above not only its 50 day moving average but now it is also expanding its time above its 200...

I would check out what the Chicago Mercantile Exchange has to offer. Their costs are very reasonable.

The crowd isn't always wrong. The crowd just generally stays to long. That is the crowd stays to long at the top and stays either too short or out of the market at the bottom.

The problem with this is that those three simple moving averages may not be best for each "vehicle." Three other averages may work best for IBM, three others for QQQ. I would take the idea of what he says and try and refine it to what you trade.

I prefer the exponential since it gives more weight to recent actioin. I use moving averages as points of support and resistance and for signs of strength. The signs of strength come from the time spent either above or below the moving average.

I would use more than one chart comparison to say that the US will continue in a bear market. Bear markets come in all time frames and if Japan's has lasted 12 years there is no reason from that to say that our bear market will last that long.

I think it is the real thing. The negative sentiment is very extreme. The market is going up on negative financial news. The average time above the 50 day moving average of the S&P 500 is increasing while the average time spent below is decreasing. Finally a great number of investors have...

Another way to look at moving averages is from a post I did several weeks ago and that is comparing the time spent above to the time spent below a significant moving average. A significant moving average would be a 50 or 200 day. Since the time involved here are either 50 or 200 day averages...

I generally build a position of 100 in lots of 20 and I let the market decide how I scale out of the position.

Your plan should include your money management plan. How much are you going to lose on a trade. Stick with your money management through the use of stops. Never increase the size of your stop loss. Your plan should also include your cut off point, the point that is decided in terms of time...

I view indicators as dynamic not static. To me this means that over bought is 80 sometimes and at others it is 60. The same applies to over sold levels. I often look at the 10 day average of an indicator and from this 10 day level develop over bought and over sold readings.

I use it by combining three readings, the next day reading, the day two reading from the day before and the day three reading from two days before. The combination gives me an idea of the chances having a higher close. I also use the extreme readings since a low RSI doesn't necessarily...

We have just published an RSI study with 910 data points at http://www.tapetactics.com. This is a free site. Howard

I think the book is excellent if you are new or somewhat experienced in the field of technical analysis. My favorite books on technical analysis are the series from the publishing house of John Wiley, the books edited by Don Macke. This are older books that Wiley has republished.

About six weeks ago there was a shift where the average time above the 50 day line started to expand while the average time below the line started to contract.