Appropriate use of Simple Moving Average?

yes just on the daily but that's b/c i swing trade and that's the appropriate time frame for me. if i was position trading i would def use the sma (same ones 20, 50 and 200) on a weekly chart.

 

appropriate use is not use at all.

 

Any you traders ever stop to consider – a sma/ ema/ lines/ indicators/ whatever…

Is simply context… and as such does not constitute a set up - or reason to trade

Apparently not….

Context is simply a road map… it is not the destination

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Personally – I like context….. but then I also know everything works… and everything does not work – at times

Price and volume not withstanding of course

argue on

RN

 

yes, that's why I said, most good traders don't actually use an MA (or any other indicator for that matter) but some become experts in observing them. Especially when price behaves abnormally.

 

And how exactly do you know that? Did somebody publish a definitive survey of all the consistently profitable traders?

 

like the man said, "I'm not any smarter than you, I've just been around a little longer."

 

That's not an answer. Lots of people believe stuff just because it's tradition or conventional wisdom. That doesn't mean what they believe is true. All ancient people used to believe the world was flat. Their beliefs did not affect the shape of the world one iota.

 

ok, when they publsish that survey of all successful traders, let me know

until then, I'll just have to go on what I have observed

 

Having an open mind helps tremendously when participating in public forums related to trading and/or technical analysis.

I know successful traders using:

Indicators

No indicators

PA

No PA

Statistics

No Statistics

Adding to winners

Adding to losers

Not adding

Scaling in

Not scaling in

Completely Automated

Semi Automated

Totally Discretional

Stocks

Futures

Forex

You get the idea, who the hell is anyone to be the authority of what should be used or not used ?

It's all very personal.

Some people can many anything work others cant make anything work.

Trade and let trade instead of being so judgemental of others.

 

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Good points on price;
volume.

As far as your moving average comments;
thats good,also,, not that i agreew with that.But disagreement is good also;
too many on one thing can goof it for awhile

And like an old trader told me over 7 years ago=Moving averages??Fine, you better get more that that,LOL