trading using moving averages

[tommcginnis]

As a starting point about the usage of moving averages is it a good article. It would have been a very small step to mention that comparing two moving averages to identify "strength of the trend" forms the core of the MACD indicator.

You mentioned the MACD.

 

[SimpleMeLike]

1. I won a national investing championship ("things" being slightly different, I might have won 3 times), so I have some cred somewhere in the financial/trading world. You ever do anything like that?

2. I was #1 (out of 225 advisors covered) in the MoniResearch investment advisory newsletter for 5 years ... and by a LARGE margin. (In spite of that, you think perhaps I was just "lucky" for all those years and am actually FULL OF CRAP. Suggest, that's not a good bet.)

So... you regard anything I have to say about the markets as mere bupkis?

I'm not telling you what you should do, but rather trying to direct you away from unproductive pursuits. (Not that it really matters to me... you ain't sending me any money nor paying my bills.)

Scataphagos,

Great job on your accomplishments and thanks for sharing. I have a question for you, I would like input on my exiting strategy.

Today on crude oil, I entered short at red arrow, stop loss above orange arrow.

It has always been a challenge for me decide when/where to exit a position for profit. I do not like using predefined targets. I like for logical (less emotion decision, less opinion) reason for exiting. So recently, I decided to use a 7 ema for exit strategy. For this case, when I enter long and bar close above 7 ema, I place stop loss 2 ticks above bar high.

So for this case, I use price action to enter and set stop loss placement, and an indicator (EMA) to subjectively exit the trade. I do not use the indicator for no other reason, but for my personal reasoning.

What are your thoughts on this?

 

[Scataphagos]

1. You're talking a range of what, 30 cents? That's just noise.

2. I don't like MAs usually.

Buy/sell/risk decisions should be made on "support and resistance" + a buffer to allow for "overshoots".

There are only 2 logical places to exit a position (profitable or otherwise)... that's when you perceive either "exhaustion"... fading into an extreme, or "breakdown"... suggesting the trend may have reversed. Everything between is just "hope and gut"... not a good way to trade.

 

[SimpleMeLike]

1. You're talking a range of what, 30 cents? That's just noise.

2. I don't like MAs usually.

Buy/sell/risk decisions should be made on "support and resistance" + a buffer to allow for "overshoots".

There are only 2 logical places to exit a position (profitable or otherwise)... that's when you perceive either "exhaustion"... fading into an extreme, or "breakdown"... suggesting the trend may have reversed. Everything between is just "hope and gut"... not a good way to trade.

Thank you Scataphagos and I appreciate your response.

 

[padutrader]

Out of curiosity: what was/is the purpose of your trading? Do you do it to supplement your income? Or is there an other motivation?

good question

i am 62 years old so now i do everything for enjoyment eat drink trade.....i would have liked to make money.
but not many people are highly successful in trading.......that is probably true in any other activity as well.
but right now i am only trading to be busy...

 

[padutrader]

So recently, I decided to use a 7 ema for exit strategy.

ema should not be used in tight channels.....that is a tight channel.
you are studying Brooks course....in tight bear channels which is a strong BO on a higher time frame only sell..

 

[padutrader]

1. You're talking a range of what, 30 cents? That's just noise.

2. I don't like MAs usually.

Buy/sell/risk decisions should be made on "support and resistance" + a buffer to allow for "overshoots".

There are only 2 logical places to exit a position (profitable or otherwise)... that's when you perceive either "exhaustion"... fading into an extreme, or "breakdown"... suggesting the trend may have reversed. Everything between is just "hope and gut"... not a good way to trade.

damn right.....
however ma are dynamic S/R

 

[padutrader]

What are your thoughts on this?

any signal is only as strong as the context that precedes that signal
if the market has not gone above a moving average for a 'long' time, then if it goes above it, it signals a weakening of the trend........

just a break of trendline does not make a reversal.......

if market goes above a support and then breaks below it then that is a failure and you could sell ...the support may be a trendline a pivot....ma
if the context is right...... then you could take any signal ....it does not matter if you use S/R pivots ma trendlines.

 

[easymon1]

so now i do everything for enjoyment eat drink trade....

well had i known that sooner . . .

Here's a 'funny' story by trader Steve Bigalow about a Polar Bear.

Between jokes, Steve talks on the dreaded 200, 50, 20 MA, and 8 EMA, all the while leading up to the Penguin Joke that follows some minutes after the Polar Bear Joke.

cheers

 

[padutrader]

well had i known that sooner . . .

Here's a 'funny' story by trader Steve Bigalow about a Polar Bear.

Between jokes, Steve talks on the dreaded 200, 50, 20 MA, and 8 EMA, all the while leading up to the Penguin Joke that follows some minutes after the Polar Bear Joke.

cheers

thanks

1hour is too long right now but perfect for the weekend

will use it to kill time over week end

which incidentally i hate