SuperEgo

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Fitz,

hmmmmmmm ..... for 6 months here ...... I hardly heard what you're talking about .... i.e. I don't recall meeting those successful traders ... maybe it's my fault not being at the right threads, but I recall very well that most of them here, especially the ones polled before, said they either breakeven or lose money ... and I guess that's exactly why they're all here ... to learn, to improve, to become better traders ...

Except for SE and that other guy whom I'm bored of mentioning his name/alias ... well that other guy happened to be a big lie ... so I guess everybody's eager to find out the reality of SE's super knowledge ...
 
<center>Daily Chart</center>

Uptrends:

For uptrends, your daily chart will show the 5MA below the qqq's and serve as a "floor" to catch the qqq's as it declines.

See attachment.
 

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<center>The 5ma</center>

All trends that obey the 5ma are <b>very strong trends</b>

Generally, a stock will come off of a bottom and <b>test</b> the 5ma. What this means is that the CLOSING PRICES will be AT OR VERY NEAR A <b>FLAT</b> 5ma (see pic2.gif). Once stocks bread the 5ma to the upside you need to see consistent testing of the 5ma as the trend accelerates.

So a stock (qqq's) will bottom out, test a FLAT 5ma, break the 5ma to the upside, and ride the 5ma up with the trend (consistently testing the 5ma as trend progresses).

When a stock hits a top and reverses the series of events is exactly the same as a bottom reversal, only mirrored. This process starts with a topping formation, a violation of the 5MA to the downside, a test of the 5MA, and then continuation of downtrend with the 5MA acting as a "ceiling" not allowing the qqq's to break it.

See attached file.
 

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<center><b>The 20MA/40MA</b></center>

If a trend is strong it will obey the 5MA. Once a trend starts to get weak, the qqq's will start violating the 5MA and making a run for the 20MA and subsequently the 40MA.

There is no need to get out of a long/short position when this phenomenon occurs. You simply wait for a test of the 20MA and then a snap back to the 5MA. The trend should continue with the 5MA acting as support/resistance.

So the 20MA and the 40MA act as support for the qqq's if the 5MA is above the 20MA, the 20MA is above the 40MA, and all MA's are moving up. The angle at which the MA's are increasing is very important. Generally, the greater the angle, the longer the trend.

And if the qqq's are in a decline and you are shorting, the 5MA will be below the 20MA, the 20MA will be below the 40MA, and all MA's will be declining. Again, you will want to notice the angle of the declining MA's.
 
<center><b>Intraday Trends</center></b>

Intraday trends follow the same rules as daily trends except that they are much easier to deal with. Every day starts with a new attitude and a previous day's action CANNOT serve as the next day's sentiment. Your charts will tell you what to do.

All intraday charts follow the 5MA, 20MA, and the 40MA, religiously. When I say "religiously" I am speaking of days when there will be an up/down day. Sideways markets are a little harder to work with, but require a different strategy.

If you notice today's action in the Nasdaq Composite (on a 5min chart) you can see that the comp opened up below all moving averages, made a run for the 5MA/20MA (and subsequently the highs of yesterday), and reversed to the downside. This reversal was guided by the 5MA and the 20MA. These two moving averages prevent the composite from going higher.

The previous session was similar to today's session (only in reverse) in that a gap up opening pushed the composite higher and the 5MA/20MA supported the comp all the way up to a strong close.

These are just basic details that I want to point out and there are many factors that influence an intraday/daily trend reversal. We will go over these factors later on.
 

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I am writing some material for you right now and I will post it shortly.

SE

ps anyone wants to clog up the boards with useless jibber-jabber can and has the right to. But out of respect for the traders that want to eventually become profitable, please start another thread about SuperEgo and I will rip you to shreads over there. Deal? See ya.
 
Originally posted by super_ego
ps anyone wants to clog up the boards with useless jibber-jabber can and has the right to.
More...

Well said, Brother SE...

Reading your discourse is most entertaining...

Love,
Candle
 
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