He who smelt it.dealt it.
He who smelt it.dealt it.
What market was this? Where were you long/short?
Buyers or sellers can enter a market whenever they want
Doesnt matter which market,charts of which are all the same.
My market is the ftse.ive stopped trading all others to concentrate on this and make it my bitc*
that useless piece of shi* that is the 200ma.
almost every time i have waited for price to hit the 200ma so i could get in or out of a position and it just reversed in seemingly thin air.
it now appears the 100ma was getting in the way.
so now im using 20/50/100
MA's are useful as trend identifiers but not as entry triggers - you're on a hiding to nothing if you go down that road.
MAs have no relevance to what price is doing now. They have no relevance to support and resistance. People mistake their relevance when price reverses when it hits an MA and therefore think it is because of an MA. Drop them entirely.
Ask just one question about all indicators. If price hits the lower bollinger band/200 or 50 MA/whatever, then is this what the large traders (who are the ones who move markets) are going to react to, and therefore enter the market en masse to reverse price?
Answer: NO
Ditch MAs, they are not even a brush stroke on a painting. They are nothing.
ButYes, price reactions to MA's are meaningless, but I don't agree with your extreme line on MA's. They are good if used, bad if misused.
As said above, they're useful in trend-following identifiers - so for my long-term trend-following trades off the dailies -
* I only buy if price is already above both 50 and 200EMA
* I prefer a buy in which the 50EMA is sloping upwards
* I like trends in which the weekly bars have not been intersected by the 200EMA recently
* once a trade has passed break-even, a close below the 9EMA would suggest upwards momentum has seriously weakened, probably time to exit.
I look at price action too for trend confirmation and entry signals of course, but as used above the MA's are a key aid.