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Please share your favourite Moving average levels
- Thread starter victorycountry
- Start date
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Good chart EGA6;
extended, but usually they[UP trends ]tend to get more extended.
Pull backs happen in SLV or whatever....................................................................................WSJ likes 65 dma..... -that may help sell papers.[7-6-2015, 3:57 central time] IBD likes 200 dma.....
Thanks. Don't get me wrong. I am NOT advocating to buy into silver here. Yes it's extended but I will be adding to positions on a pull back. My initial position was in mid to late April around 16.60.
The herd mentality in trading being what it is it does matter what squiggly length MA WSJ or IBD or XYZ uses. Just that they use one is good enough reinforcement for them
Trade what you believe. I believe my squiggly diddly lines and a healthy bit of voodoo works for me and my accounts PnL statements agree.
%%Thanks. Don't get me wrong. I am NOT advocating to buy into silver here. Yes it's extended but I will be adding to positions on a pull back. My initial position was in mid to late April around 16.60.
Its headed to $50;
NOT a prediction -simply a trend direction. LOL
I don't know why...and I can't explain why moving average forms some resistance/support level with a theory (e.g. perhaps anchor theory? - people evaluate prices with moving average level to find out whether a current price is under/overpriced)?
Yesterday EURUSD depreciated when it reached ma100 in 1 h time frame and eventually went above it 2 hours later. - perhaps, it is signalling bullish sentiment now. To me, Moving average level is quite important cos I use them to determine whether a security is in bullish/bearish sentiment.
I also monitor moving average 13 and 5 and 0.
any other your favourite moving average level?
I don't think this can be answered because it depends on your time scale and the behavior of the price action. A five week moving average works well when you're looking at weekly candles in a swing trade. But that's a 25 day moving average if you're looking at daily candles. Also, when I apply a moving average to identify bull periods and bear periods, I often have to adjust the time period to fit the movement the stock. Some time values are good for a starting condition, but you should tweak it based on how it fits the pattern.