SMAs - what are they good for

countryBoy641

countryBoy641

Folks here asking for "setups"
How does a successful trader to that?
Here's a siimple one
Simple Moving Averages

Loads of good tutorials on TA.
I use Stockcharts.com.
Huge documentation.
And here's why people use SMAs
(loads of smart TA folks here as well)

SMA TA rules:
The 50 SMA must be above the 200 SMA
And the prices need to be above the 50 SMA
Not happening with SPX


$SPX.jpg


$NDX getting ready to "crater"
(should be 200 SMA, not 200 SDA)

$NDX.jpg


Here's a good looking chart:
(and certainly not good to be long most stocks here)
50 above the 200
AND prices over the 50

$TNX.jpg


Here's a decent one, but I wouldn't want this as a long:

XLV.jpg


Here's the best 2 for me, best charts
Prices on top, then the 50 then the 200
(of course others here have all kinds of favorites)

corn.jpg


soyb.jpg
 
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I like the way some traders hate ma\ they say ''too much lag''.
LOL Perfect;
markets dont work when all try to do the same thing:D:D....................................................................................................................................................................................
 
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I used to trade the moving average where i would buy below the line for a + slope. Vice versa for sell.

The idea is that the moving average represents "value", jsut like a vwap. I think the slope is more significant than where price is relative to the moving average itself. Keltner is basically a way of doing it by using ATR mulltiple around the average.

You can easily create a strategy where you can set limit for slope to trade the trend, and if it falls below a certain number, play the mean reversion.
 
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