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Question for the Technicians and Traders out there?
- Thread starter mschey
- Start date
Quote from joepepper2001:
heres what would have happened
http://i12.tinypic.com/455u6xc.gif
the 50ma from the first chart is down in the part where the question is and a rally took price right thru
If I'm reading this correctly, you would have made money twice by fading, and then gotten obliterated on the 3rd time hitting (and going through) the 50MA, which is pretty typical of the "power of threes".
Don
Quote from Don Bright:
If I'm reading this correctly, you would have made money twice by fading, and then gotten obliterated on the 3rd time hitting (and going through) the 50MA, which is pretty typical of the "power of threes".
Don
right
thats why i put up the chart, not every touch of the 50ma is a short, you really need to know where the overall picture is
"power of threes".
that makes alot of sense , I see it all the time, 3 touches on a trendline after a run up and three exact moves down before they turn up, thats what i'm saying, where are you when the price hits 50 and is it a 2 day 2 minute chart like the one I put up, whats the 10day 30 day 60 day and 1 and 2 year charts say
just don't the first guy to always dump on a moving average, theres always something going on to left to look at
maybe you could give more advice on the 3 stuff
if I get a chance i'll post some charts where I've caught some good 3 action
A simple exercise for traders to see the power of threes, is to watch the S&P 500 pivot points during the day. You can go to www.stocktrading.com/Tradinginfo.htm each day to see what they are. Then watch how often the trading troughs (between the pivot points), hold the tick by tick action....then you break a resisistance pivot, and it becomes the temporary support pivot, etc. This is one of the primary decision makers for intraday entry/ exit of stocks.
Don
Don
Quote from Don Bright:
A simple exercise for traders to see the power of threes, is to watch the S&P 500 pivot points during the day. You can go to www.stocktrading.com/Tradinginfo.htm each day to see what they are. Then watch how often the trading troughs (between the pivot points), hold the tick by tick action....then you break a resisistance pivot, and it becomes the temporary support pivot, etc. This is one of the primary decision makers for intraday entry/ exit of stocks.
Don
thats funny that you say the s&p because I was going to say i see the 3 thing in ym alot when its running or dumping, if it dumps 40 points and goes up about 10 it dumps about 40 again and again after a run up
heres a chart of the es 3 runs of about 12 points each and it just ran from 1428 to 1440 and pulled back a bit
http://i1.tinypic.com/44squip.gif
http://i13.tinypic.com/316w7sp.gif
3 moves in the ym this week all about the same
I see alot of guys who say the cosolidation is the half way point and it seems to wrk pretty good for targets, must be alot of people trading it, it seems to line up with the overhead resistance alot of the time
3 moves in the ym this week all about the same
I see alot of guys who say the cosolidation is the half way point and it seems to wrk pretty good for targets, must be alot of people trading it, it seems to line up with the overhead resistance alot of the time
fyi, the poll was relative to the 50 DAY ma, and your chart shows an example of when it has been trading below the 50 period ma (2 min periods). depending on your philosophy what holds true for one time period may or may NOT hold true for another.
it is a good chart (prophet.net), but one chart does not prove anything.
for the poster who requested other technicals and fundamentals, that does not apply to the question.
can this single technical provide a clue as to which direction and (magnitude of the vector)? it was worded vaguely, but sometimes it is helpful to look at a single indicator alone. sometimes a single indicator only has meaning as a confirmational tool.
as for the talk of the rule of the three bs, sounds like someone has been reading a few too many lord of the rings type novels.
it is a good chart (prophet.net), but one chart does not prove anything.
for the poster who requested other technicals and fundamentals, that does not apply to the question.
can this single technical provide a clue as to which direction and (magnitude of the vector)? it was worded vaguely, but sometimes it is helpful to look at a single indicator alone. sometimes a single indicator only has meaning as a confirmational tool.
as for the talk of the rule of the three bs, sounds like someone has been reading a few too many lord of the rings type novels.
Quote from joepepper2001:
example
http://i16.tinypic.com/2usu1e9.gif
if you had shorted this touch of the 50ma and didn't look at other things would it have ben good?
Moving averages for the most part are useless.
Quote from mschey:
So here is my question, if price is trading below the 50 day moving average, and rises and hits it, what is the correct action to take?
Thanks!
hi mschey,
1st answer to the question: do nothing because I am not sure.
After seeing the chart,
2nd answer to the question: do nothing because at that point price is comfortable rotating inside a range - in balance.... It could go either way.