Appropriate use of Simple Moving Average?
- Thread starter scotta65
- Start date
Another level of trading using MA's and MACD? ROFLMAO
No need to respond. Not wasting anymore time reading you.
like i said i don't use any other indicators besides sma's. the adx IMHO doesn't tell you anything you can't see from price and the sma's.
for example, with AAPL, on 1/2/12 it rise to its declining 50 dma. i would short below this day's low.
yes i know it's a cherry picked example of how it would have worked out but believe me i've placed trades where it didn't work out and that's what the stop is for.
Thanks, your right tho..
I asume you use it on daily charts ?
any weekly ?
Hull Moving Average is an attempt at lagless averaging [almost a contradiction in terms though] and Mark Jurik sells some DSP averaging indicators that have about the least lag of anything available. That idea of trading from above a falling average and below a rising average is dependent on the lag though! It's going to lead to curve fitting if one tries to optimize that mess...
better just to learn how to read an sma, or in my opinion an ema
or better yet bollinger bands
but you don't trade off them
you just over time learn to read them
Frank said it right
don't optimize
just pick one and stick with it
based on how often you like to trade
they don't call me oldtime just because I am old
a lot of this has to do with time
or better yet bollinger bands
but you don't trade off them
you just over time learn to read them
Frank said it right
don't optimize
just pick one and stick with it
based on how often you like to trade
they don't call me oldtime just because I am old
a lot of this has to do with time
Many appraoches trade off Bollinger bands.
when you comment, it may be better to qualify your statements as opinions or better still use facts and references.
for example, I know what feed John is using and I know the special data priviledges he has with his vendor.
Additionally, he does presentations at the home office of his vendor and he does use his bands in conjunction with other indicators. One indicator you may wish to try is "little shadows" (See pages 8 and 29 of "M3 Trading Summit").
There are many levels of trading. When a person gets beyond beginner to intermediate, he is able to differentiate between indicators and market signals found on indicators or their "derivatives" (not in the sense of calculus but in the sense of "are derived on the basis of").
Beginner levels of trading deal with risk management and money mnagement. Stops are also part of this imperfect knowledge and skill.
Advanced beginners probably stick to things like "confirmation"
At some p[oint in skill development traders swith from entry/exit skill level trading to hold/reversal trading. this is just a statement regarding risk; as risk is minimized by added knowledge and skills, then reversing is preferred over sidelining. At this point the trader is well aware that exit and entry are an identity except for sentiment orientation.
At an expert level all these are deemed not required. the reason is that there are aspects of Systems Analysis(SA) that step in to take the place of "trendfollowing" a lagging orientation) to be able to monitor and analysis in the Present or more expert to anticipate (a place slightly ahead of the Present and located in the future) while monitoring and analyzing the "NEXT" event in the trend.
A part of potfolio management addresses quality assurance. therefore, many instuments and tools of analysis have the adjective "future" associated with them.
I use the word "leading" with respect to events of trends..
Thus, this thread has taken on an advanced beginner orientation.