Support & Resistance levels , and moving averages are just meaningless lines on the chart.

[David's faith]

@themickey there is a moving average that describes sentiment, the VWAP. When people sell above VWAP it means sentiment becoming bearish, if they sell even below it it means fear. Opposite of your own indicator it works well intradays but never saw it work in swingtrading

 

[themickey]

@themickey there is a moving average that describes sentiment, the VWAP. When people sell above VWAP it means sentiment becoming bearish, if they sell even below it it means fear. Opposite of your own indicator it works well intradays but never saw it work in swingtrading

Yup, it's only designed for intraday.

 

[SunTrader]

@themickey there is a moving average that describes sentiment, the VWAP. When people sell above VWAP it means sentiment becoming bearish, if they sell even below it it means fear. Opposite of your own indicator it works well intradays but never saw it work in swingtrading

VWAP works even on a yearly basis. Which is one of the ways some funds use it.

 

[David's faith]

VWAP works even on a yearly basis. Which is one of the ways some funds use it.

Thanks for the insight.

 

[murray t turtle]

In that case "W" in wxy means WIN?

%%
MAYBE ;
WO'N won a lot +helped a lot win.............................................[IBD founding father]
Y= yes.

 

[NoahA]

You think I'm stupid? I've been through that phase already!

That's MA(1) displaced forward x days. But you know what? I've tested that strategy extensively in the past and it's not all that good. There will be some serious hiccups that you've not anticipated before.

Mickey... is this really it? Is this what was so secret that you were only gonna tell one member who would swear not to reveal it?

I honestly can't comment because I have never looked at it, so I wouldn't even know how to read it or use it.

 

[schizo]

Mickey... is this really it? Is this what was so secret that you were only gonna tell one member who would swear not to reveal it?

I honestly can't comment because I have never looked at it, so I wouldn't even know how to read it or use it.

The takeaway here is not WHAT it is (secret or no secret), but HOW to use it beyond the canned approach. I agree with Mickey that the way indicators are being taught and used is pretty useless.

 

[NoahA]

The takeaway here is not WHAT it is (secret or no secret), but HOW to use it beyond the canned approach. I agree with Mickey that the way indicators are being taught and used is pretty useless.

So can you comment on what the purpose is of this 1 MA that is shifted over? I honestly can't figure out what its supposed to tell me.

 

[ph1l]

So can you comment on what the purpose is of this 1 MA that is shifted over? I honestly can't figure out what its supposed to tell me.

Bing Chat has a few suggestions.

Offset moving averages can be used in various ways in stock trading. Here are a few examples:

1. **Trend Identification**: Offset moving averages can help identify the overall trend of a stock. If the price is consistently above the offset moving average, it could indicate an uptrend. Conversely, if the price is consistently below the offset moving average, it could indicate a downtrend¹.

2. **Buy/Sell Signals**: Some traders use the crossing of the price and the offset moving average as buy or sell signals. A common strategy is to buy when the price crosses above the offset moving average and sell when it crosses below¹.

3. **Support and Resistance Levels**: Offset moving averages can act as dynamic support and resistance levels. In an uptrend, the offset moving average might act as a support level where the price could bounce off. In a downtrend, it might act as a resistance level².

4. **Risk Management**: Traders can use offset moving averages to set stop-loss levels. For example, if a trader is long on a stock, they might set a stop-loss order at the level of the offset moving average¹.

5. **Offset Correlation**: The Offset Moving Average indicator allows for a moving average to be offset by a percentage (as well as time) in order to see if the price has an offset correlation to a moving average⁵.

Remember, these are just strategies and they don't guarantee success. It's important to use other forms of analysis and risk management techniques in conjunction with offset moving averages.

Here are some resources that might help:
- [What Is an Offset? Definition, Example, and How They're Used](^1^)
- [How to Read Stock Charts and Trading Patterns](^2^)
- [How can I offset a moving average?](^3^)
- [Double Exponential Moving Average (DEMA)](^4^)
- [Offset Moving Average — Indicator by CaptainBrett - TradingView](^5^)

I hope this helps! Let me know if you have any other questions.

Source: Conversation with Bing, 9/29/2023
(1) What Is an Offset? Definition, Example, and How They're Used - Investopedia. https://www.investopedia.com/terms/o/offset.asp.
(2) How to Read Stock Charts and Trading Patterns | Charles Schwab. https://www.schwab.com/learn/story/how-to-read-stock-charts-and-trading-patterns.
(3) Offset Moving Average — Indicator by CaptainBrett - TradingView. https://www.tradingview.com/script/W9vBJKz4-Offset-Moving-Average/.
(4) What Is an Offset? Definition, Example, and How They're Used - Investopedia. https://www.investopedia.com/terms/o/offset.asp.
(5) How to Read Stock Charts and Trading Patterns | Charles Schwab. https://www.schwab.com/learn/story/how-to-read-stock-charts-and-trading-patterns.
(6) How can I offset a moving average? | MailBag | StockCharts.com. https://stockcharts.com/articles/mailbag/2010/02/qqqq-with-offset-moving-average.html.
(7) Double Exponential Moving Average (DEMA) [ChartSchool] - StockCharts.com. https://school.stockcharts.com/doku.php?id=technical_indicators:dema.
(8) Offset Moving Average — Indicator by CaptainBrett - TradingView. https://www.tradingview.com/script/W9vBJKz4-Offset-Moving-Average/.

 

[NoahA]

Bing Chat has a few suggestions.

LOL... Well done! It does certainly provide an excellent overview.