The magic in any set or single moving average is not so much whether they are even support/resistance as it is to learn patterns of how price dances around a moving average, I like slower moving averages, but I use 18sma on one minute to monthlies, am just use to seeing same patterns and price distance, bars are bars. If too much price gets past a moving average, that alone can signal different trend has happened.
Please share your favourite Moving average levels
- Thread starter victorycountry
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The magic in any set or single moving average is not so much whether they are even support/resistance as it is to learn patterns of how price dances around a moving average, I like slower moving averages, but I use 18sma on one minute to monthlies, am just use to seeing same patterns and price distance, bars are bars. If too much price gets past a moving average, that alone can signal different trend has happened.
Monthly chart, ..., I don't look at the monthly chart for FX trading. The daily is the lowest frequency time frame I monitor. But for stock trading e.g. GE, monitoring monthly stock price movement might be important. I don't trade stocks but I may have to practice trading stocks cos I will be the tutor for a Corporate Finance paper and it covers the dividend policy and its impact on stock price. I find that students find the tutorial boring if I explain them with only textbook contents. No papers cover any Technical analysis skills at University. I believe Fundamental analysis alone is not enough to predict future price movement. But I know University only focuses on analysis for investment rather than trading.
I've got all my moving average numbers from Jack Hersey's threads. I have just check ma18 and like ma13 it does form S/R but like you said it's a bit slower than ma13. I will try not to use too many moving averages but surely I am interested in using ma18~20. So thank you Handle123.
In 1 min, other ma that I use is something like ma200 but a bit longer one. When I use them along with A/D, they help me find next bottom(top) price in bullish (bearish) market before the 123 low (high) rocket happen.
I also use longer ma 60, 95 and 260 on both small and large time frames.
You sound very knowledgeable and experienced stock trader. Thank you for sharing your experience. If I start trading on stock market, I'll surely pay attention to what you have mentioned and will start to participate in stock threads
From my experience, finding a safe place to set a stop loss is always hard. What I hate to see is although ma definitely gives an idea of where S/R, sometimes I still loss cos of the hammer with a long tail or prices attempt to make higher high (low) with less buyers (sellers). Now, with A/D, I find a safe stop loss. Price chart pattern is not only chart that shows lower high, A/D do as well. You can also find ma around that area so when both AD and ma agree eventually what I do 'buy low and sell high'.
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so according to the EUR chart, looks like the next R level is at ma13 (1.12004) today...
there is should not be the favorite MAs
what there should be is a correct definition of the trend
properly defined trend surely may have MA (or just trend-lines) that encompass its borders and these are the levels that one should use
next time there will be other levels, etc etc
The trend defines levels of MAs or set-up of any other indicators, not the the other way around as many would like to think
there is should not be the favorite MAs
what there should be is a correct definition of the trend
properly defined trend surely may have MA (or just trend-lines) that encompass its borders and these are the levels that one should use
next time there will be other levels, etc etc
The trend defines levels of MAs or set-up of any other indicators, not the the other way around as many would like to think
Thanks for correcting me
I just wanted to check whether I've got all MAs that forms strong R/S.
Yesterday(=Today in US time), EURUSD depreciated... like FON said, I fliped through all time frames to anticipate the next price destination and 30minutes and daily chart agreed that it would be 1.2000 and 4 H chart (which I don't usually monitor either) was in the process of the last bar of 123 low which made me to initiate a long position only my minor concern was the monthly chart (which I have never checked until Handle123 mentioned) which did not agree.
If you look at the chart below....
I had a chance to initiate a long position at the green (1.11300) circle but it was already overbought condition and I did not want to be a herd and EUR eventually crossed 1.1500...I then expected it to depreciate ...
So I waited until it fell down to the red circle ... but it was still kinda semi-overbought condition...and it even fell below my longest MA, which usually signals reversal than pullback.
But you know I am still learning...and you learn more from your mistake.
So I set my stop loss at the low of the day then and my position was not too far away from the stop loss so in case I lose my loss would be still minimised.
And then I went to bed
See that afterward...yep, it was clearly reversal even though the next MA was at 1.2000.
And then I remembered a journal on round number. Prices cross 5(half) and the round number relatively less than other numbers. Yep, it wasnot only MA that forms strong R/S. There is also round number( and half round number) S/R too.When the condition is still remaining overbought/oversold condition after it reaches pullback area it clearly signals reversal. To reach 1.2000, prices must first go through numbers between 1.1600~1.1900 after crossing 1.1500 for the second time.
Learned something good yesterday (=today in US time)
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http://www.elitetrader.com/et/index...for-small-traders-the-complete-method.282485/
For MAs, I would do consider something like that.
For MAs, I would do consider something like that.
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That sounds better than the WSJ-they use 65d ma + 2oo dma.
I Prefer 200 dma myself.....