sold another lot tight bear channel sell for any reason
trading using moving averages
- Thread starter padutrader
- Start date
focus on channels....the market always moves in channels. what is called a strong trend is actually a tight channel.
most of the time it is in a broad channel
if you know the boundaries of these channels then you will always know when to buy and when to sell
most of the time it is in a broad channel
if you know the boundaries of these channels then you will always know when to buy and when to sell
long eurusd bottom of channel expect breakout of top of channel
stopped out
I've never been able to see where using a "plethora of MAs" produces results.
Where MAs DO work is when they act as support and resistance + consideration of their slope.
The most important and most widely followed are the 50 & 200.
Sometimes however, the 100 or 150 will fit the market better (not necessarily equities, but any market). I recall a time when the 400 was a PERFECT fit for catching the most important trades with 100% success. Being so long however, there were not all that many signals... but they were all spot-on for big moves.
Like any other tool, MAs need to be understood and worked correctly.
Where MAs DO work is when they act as support and resistance + consideration of their slope.
The most important and most widely followed are the 50 & 200.
Sometimes however, the 100 or 150 will fit the market better (not necessarily equities, but any market). I recall a time when the 400 was a PERFECT fit for catching the most important trades with 100% success. Being so long however, there were not all that many signals... but they were all spot-on for big moves.
Like any other tool, MAs need to be understood and worked correctly.
so you only understand and use them correctly and you are a big dog
that is what i understand
1. I try to understand how they appear to be working and act accordingly.
2. If you'd read all of my posts and followed my advice, you'd be richer than the "Slumdog Millionaire".... you question whether or not I'm a "big dog"? (Not a REALLY big dog, but a big one in a small kennel.)
Unfortunately many of my posts have been "you're doing it wrong", but that's worth something too. It's good to know when you're "fishin' in a dry hole" so that you stop doing that and move on.
I'm more than willing to guide traders "where/not to fish", but I'm not going to bait their hook and cast their line for them too.
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MattZ
Sponsor
This thread inspired us to write about Moving Averages
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Some one that likes spaghetti, may like a tangled nest of moving aVerages. I never have used a 100 dma much; but that can be a good thing. 200 dma tends to be real helpful.............WSJ likes 65 DMA+ DOW; but that one is too little + to late for me.
Some dont like them, because they lag,LOL + lag in commissions expense.
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