Can you make sense of these technicals?

Discussion in 'Technical Analysis' started by farmerjohn1324, Feb 7, 2020.

  1. Very simple... 9ema and 90wma...

    I would think that when the 9 rises above 90, it would signal a buy. And vice versa.

    But it seems that the opposite happens.

    I'm looking at ESH20 futures. Also, it happens on average once every few days. So not enough examples to make a good screenshot to post.
     
    murray t turtle and Nobert like this.
  2. guru

    guru

    Funny that you’d “think” something opposite to what you “observe”.
    Shouldn’t you think something based on what you observe?
    Or do you just think of random ideas and then get surprised that opposite happens? :)
     
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  3. traider

    traider

    You are down the rabbit hole. Ever wonder why it's 9 and 90? Is there some voodoo in these magic numbers? Are those god divine numbers that somehow rule the trading universe?
     
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  4. schizo

    schizo

    First, what is the time frame you're looking at? It's worth remembering that moving averages are TREND indicators. They work like a charm in strongly trending markets. In a choppy market, however, they work in the opposite manner as you mentioned above.
     
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  5. %%
    That;
    + what kind of market is it?? Even if we know, i would never assume all or most know. Actually its surprising ,the number of people that don't have any idea what kind of market/strong trend its in. Or have any idea how to measure CHOP/SLOP or deal with chop.....……………………………………………………………………………...
     
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  6. tomorton

    tomorton

    Most traders who suggest TA doesn't work are chasing reversals. Most that I have had contact with start out using TA for no other purpose.

    Give yourself a chance and look for trends: follow them: get out when they pull back: stay out if they go into consolidation: get back in again if they resume. Its easy.
     
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  7. %%
    Good points, trend morton;
    but only if you value profits over thrills...…………………………………………………………..
     
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  8. schizo

    schizo

    TREND VS RANGE

    upload_2020-2-7_15-19-10.png
     
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  9. speedo

    speedo

    :D
     
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  10. padutrader

    padutrader

    you think wrong.

    the crossover is a buy signal if and only if the 90 ema is moving clearly up.

    if the 90 ema is going clearly up and the 9 ema crosses below, only an idiot will think that is a sell signal. it is a buying opportunity.

    you then need a entry signal preferable a price action one and a risk management.

    because by the time the 90 is moving clearly up it will be very clear even to your dog that the trend is up.

    and that you should look to buy. and that all sell signals will fail.

    do not do illogical things and blame technicals
     
    #10     Feb 7, 2020
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