Garbage Is Good

[profitseer]

So at any rate, I have been having good luck using ma to identify garbage zones where in my opinion any trade long or short is no better than a 50/50 gamble.

But what I've noticed is, the thicker the garbage, the stronger the move is when everybody decides to move to a new neighborhood.

I guess technicians have been saying that for ever, but usually they talk in terms of time spent in congestion.

The zones where the ma looks like one of Moogs sine waves usually have weak breakouts. But the zones that look like a computer rendition of an Edvard Munch painting usually have everybody, bulls and bears, all agreeing that we gotta get out of this place.

 

[profitseer]

Aw shucks, well having said that, I figured out a way to reduce my garbage zones back to the simple sine wave. This is the same set up Soloman talked about when he said, "There's nothing new under the sun."

The earth shattering set up is

Bear 1. a high on the ma
2. Followed by a low on the ma
3. then followed by a lower high than high 1 on the ma

go short when low 2 is taken out and hang on till price takes out the ma

opposite for long.

sorry to have taken up so much of your time. I've got plenty of it and I forget others don't

But still, you have to give me some credit for the introduction to the concept of garbage.

 

[traderkay]

profit, how long have you used this strategy? what were the results like?

 

[LongShot]

he's pulling your leg traerkay...sheeesh

 

[chasinfla]

this might have implications for my theories on <i>white trash</i> which, you will not be surprised to learn, are highly unorthodox. :eek:

Good stuff.

 

[profitseer]

Quote from LongShot:

he's pulling your leg traerkay...sheeesh

am not. It's a classic set up. High, low, then lower high, then a break of the low. The question is, which came first, the zig zag set up or the rolling papers?

 

[candletrader]

Quote from profitseer:

So at any rate, I have been having good luck using ma to identify garbage zones where in my opinion any trade long or short is no better than a 50/50 gamble.

It depends on the nature of the garbage... often where there is no trend you will see clearly defined support and resistance channels... then the trade becomes better than 50:50...