Folks, I was directed to this thread because I posed the same question on another forum. This kind of thing is usable and relevant. Not everybody trades equity markets. I trade forex, and since it is 24 hours, I want a way to find a price to enter according to my system while the London session is on (I'm in Texas). So if I can get this calculation, then I can place a buy or sell stop and get in on the start of a possible move overnight. With forex, you can place your buy/sell price, stop loss and/or limit all at the same time. I am thinking of a way to forecast how many bars it would take to reach also. You need to take into account 1. The distance of price from the MA 2. The average or true range of the price bars 3. Maybe something else So far a good guess is abs(price - MA) divided by ATR/2. Round this off and you get within one or two bars, unless ther is very little volume (3PM EST to 1 AM EST)
I find myself drawing retracements alot from the 40ma. When the trend changes and the 40 is in the area. I'll just use the price/40ma cross and draw my fib retracements from there and previous peak/valley. Here's a chart, not a perfect example because the peak candle so far above the 40ma. I can most likely start off the 200ma should the market stop retracing there....what I'm trying to say is. Once I have a good turn on a MA I can easily project where's it's going with fibonacci from where it's been. I don't know if it's the same result you guys are doing w/ your formula I'll probably have to post a better example, using the 9ma on this chart probably get you closer to the turns. Sorry if I'm not to clear. http://share.esignal.com/groupcontents.jsp?folder=MACD&picture=0813nas.png&groupid=225
When things get moving too fast for calculating, it's good to have a chart with multiple MA's. Every picture tells a story, IMO http://forum.esignal.com/showthread.php?s=&postid=16033#post16033 Charts gone wild.<g>
Hi, Yes, I only use sma, I figure I get can enough fluxuation on a one or 2min chart if I need to. I think all the ma's and candlestick patterns are very honest on a 2min chart. Where else can a 9ma , 100,200,400 if need be interact and all have meaning? A 13min w/ 40ma cross.....I'm still using fibs and such to project future price.