DayTrading... I monitor 25 charts, settings are 5 min, with 10, 20, 50 moving average on each. I trade momentum trades when price is following or running away from 10 ma, and retracement trades when prices bounces off 20 ma and 50 ma. All depending on other market factors, index, Level 2, Volume. If price smashes thru the 50 ma, then a trend change may be on. I trade charts when price starts out fast from 9.30am and hopefully the trend is set for the day, and any pullback to 20 ma or 50 ma is just that a pullback and not a change in trend. NO other oscilators or fancy calcs, just the above is enough to make a few bucks..but not getting rich yet... But if you want "keep it simple stupid", then this is that.. What you think, do you do the same...
what do you use to find exit points on your trades? MA are good entry point indicators but i've found that they don't give adequate exit signals. would be very interested in how you interpret them. -m.o.
Exit points, I am not so good at that, usually greed and fear play a part, but thats an area I need to work on... I watch to see when the power behing the movement runs out, level 2, price levels at either 0.25 or .50 or 25.00 levels... I move is strong its nothing to get back in... Banking profits is never bad...
What about re-entry in estblished trend , Do you wait until price hit either 20MA/50 MA? their distance is too much, how you know which to consider? sometime trend don't make pullback to thoses Avarages and if you wait for it to happen you miss the trend
I believe trading is a matter of price and market judgment not black and white instructions, if re entry is not on or too hard then another chart or another day...
i've stopped using MA for intraday trading because to me, it kept taking my eyes away from price action. and Price Action is all trading is about. Daily and weeklys on the other hand, MAs are all good. -m.o.