a nice system, lagging slightly the price movements but extremely usable. GU was a nice trade because it was obvious what was going to happen what with the banks raising the price up to the announcement ---- if the banks were going LONG, they would have DROPPED the price to give them the greatest range upwards --- Now we watch for the upside move because "what goes down, then goes up and vice versa" !
In my most humble manner, I just want to state that there are
many ways to skin a cat, and moving averages are simply one of them --- CCI crossing RSI, A/D crossing either, "touching" of the ADX and MACD and maybe a short ton of other indicators will ALL tell you the same thing,
the ONE advantage of the moving average cross being that it fits on the PRICE chart and therefore doesnt require its own window, which makes the chart bigger ! I personally use a multi MA window with a MACD to show divergences as an "assistant" and guide to length of move, although support and resistance pretty much show where the trade is heading !
Aside from that, almost anything else works just as well, which is why I smile a lot at discussions of the worth of each individual method when almost ANYTHING WORKS !!
enjoy and trade well
mp
Quote:
Originally Posted by elektrance
This one, I couldnt trade unfortunately because I was not at home at the time, but it is another classic example of the brekaout rule.
The algorithm is very simple, if thin market and price is within support and resistance, and if price breaks support or resistance and if emas are good (black ema is above or below the other 2 emas) plus an according signal from the advanced indicator then equals to brekaout. (see picture)
I really dont get what is your problem with the 5 emas...  |