IF price < sma200 THEN don't buy especially if sma200 is slopping down IF price > sma200 THEN don't sell especially if sma200 is slopping up Paul Tudor Jones: My metric for everything I look at is the 200-day moving average of closing prices.
I like to remember of Jesse Livermore, The only thing he had was the last prices, And the effect of his orders on the market. Only geniuses can keep it that simple.
I have found that the simpler the better. I use a simple moving average of the median price of each bar. That gives me an idea of the direction of the trend and the slope gives me an idea of the momentum. I then use the ADX indicator to give me an idea of the strength of the trend and again the slope give me an idea of increasing or decreasing trend strength. Finally I watch for some space between the MA and the price bars. Then I just watch the price movement. I like to keep by charts as clutter free as possible.
The MACD is fab for spotting trends, and RSI? Such a lifesaver when you want to catch those overbought or oversold vibes. Don’t forget Bollinger Bands – they’re like your bestie for market volatility.