Appropriate use of Simple Moving Average?

daniel33 · Jan 31, 2013

Quote from kut2k2:

All moving averages lag.

If you don't know how to properly use them, I would agree.

cdcaveman · Jan 31, 2013

Quote from optionbull:

Copper March is 3.75

Where will it be tmmrw at 10:00 am EST and where will it close exactly.

Do you get paid to post ?

jack should talk to a few other people.. the last time i check time is not fixed.. its relative.. hence fast markets.. slow markets... the action is quite the same if adjusted for time... read Mandelbrot.

GoldenMember · Jan 31, 2013

Quote from daniel33:

If you don't know how to properly use them, I would agree.

Knowing how to use them, doesn't change the fact that they are lagging indicators.

daniel33 · Jan 31, 2013

Quote from GoldenMember:

Knowing how to use them, doesn't change the fact that they are lagging indicators.

I never said they were not lagging indicators, they are.

However, in some circumstances, particularly once you know how to use them, they have predictive value, as in the contrary of lagging.

Do your homework, I did mine.

cdcaveman · Jan 31, 2013

its all relative.. all of it... your looking for values to relate to.. something to enable you to be a handle on whats going on... if you have a moving average.. you can see how far away from the average its gotton.. and if your in a mean reversion environment.. that could mean alot..
you know i'm almost sure that alot of strategies work.. especially on larger time frames..

say this.. only buy when you hear crash and theres some market turmoil show on cnbc.. never sell... boom you never take a loss.. and you are guaranteed to win!.. and of course don't be stupid.. by indices some stocks do actually die.. better to have them fall out of the indice then a hole in your pocket..

oldtime · Jan 31, 2013

Quote from kut2k2:

Then what is your issue?

If analyzing the numbers will tell you what the people are doing, looks to me like you're making a problem out of nothing. There's nothing technicians are doing today that they weren't doing in principle a century ago. Same same.

true, there are enough problems without making more

just look at the subsequent posts

all an argument over the numbers

It happened today jan 30, 2013 over the gdp

people like to argue about the numbers

but they forgot what those numbers represent

betting on who is buying stocks

is not the same as betting on who is buying the products or services these stocks produce

GoldenMember · Jan 31, 2013

Quote from daniel33:

I never said they were not lagging indicators, they are.

However, in some circumstances, particularly once you know how to use them, they have predictive value, as in the contrary of lagging.

Do your homework, I did mine.

I have done my homework. Your comment stated that if known how to use correctly, a lagging indicator converts to a predictive iindicator [Contrary to lagging? lol]. I stated that knowing how to use one doesn't change the underlying characteristic, that is all I said.

MA's have their uses, I use them as confirmation tools, trend or consolidation bias, trade mgmt, but predictive indicators on their own? No. As a stand alone indicator they are not viable, except to market/sell to noobies and wannabee's.

kut2k2 · Jan 31, 2013

Quote from oldtime:

true, there are enough problems without making more

just look at the subsequent posts

all an argument over the numbers

It happened today jan 30, 2013 over the gdp

people like to argue about the numbers

but they forgot what those numbers represent

betting on who is buying stocks

is not the same as betting on who is buying the products or services these stocks produce

It sounds like you're making an argument for fundamental analysis rather than technical analysis. Whatever helps you pull the trigger, dude.

cdcaveman · Jan 31, 2013

Quote from kut2k2:

It sounds like you're making an argument for fundamental analysis rather than technical analysis. Whatever helps you pull the trigger, dude.

The point is. You dont get the point........ haha

kut2k2 · Jan 31, 2013

Quote from daniel33:

If you don't know how to properly use them, I would agree.

Oh brother.

As GoldenMember pointed out, you're just plain wrong.

What you are coyly hinting at is Momentum, e.g., MA crossovers.

Yawn.

Momentum indicators can be, and often are, made with no MAs at all. This is elementary stuff.

What you may not realize is that while momenta are great when price is trending, the last things you want to be looking at when price is chopping are momenta. Momenta in chopping markets are the sources of whipsaws aka death (of your trading account) by a thousand cuts.