Also, does that problem w OEC's WMAs only apply to WMAs or to all MAs? And if so, what's a good (preferrably free) charting progam i can use w OEC's feed?
The last several days I have subsituted a 144wma for the 240wma with some success. Has anyone else tried a little tighter wma? It seems to somewhat correct the problem of the wma going one way and price action going the other!
I think that's really depends on how fast your chart is. I actually use a combination of an 0.1 range chart with 144 WMA and 1min chart with 240 WMA. This is because range bars tend to last anyway from 3 to 10 minutes therefore a 144 WMA is more suitable with them. I trade the SPY BTW.
If i see price making a new low (LL) and waves failing to make it (HL), I usually don't take the next trade as for this is a good sign of a Double top or Double Bottom which is a very good sign of reversal (espcially in the ES). The example you brought of the NQ is very good as you can see that the price made a Double Bottom and then reversed to the upside.
Jjrvat, How do you determine what moving average to use along with the 240WMA? I trade the NQ and look at either the 110 Tick or 30 Tick chart. The 6 WMA seems to crowd the bars too much and is extremely sensitive (whipsaws) especially on the 30 Tick chart. Do you have any suggestions on what moving average to use to replace the 6WMA? I don't like the idea of large stops so I'm a little leary about using a 55 WMA. Thanks for your help. Floyd
This is one of the best, if not the best, post on trading I have seen. The way jjrvat laid out the system is simple yet elegant. It contains all one needs and nothing more. My hat off to you, jjrvat!!
The NQ chart is priceless. Price action is key. How many people stress that? Very few. It is indicator this, indicator that, but very limited info on price action. There is so much garbage out there, it is no surprise that over 90% of traders fail. I used to subscribe to TTM newsletter. There was one person who posted a chart showing only price action in the discussion forum. I thought there would be a lot of feedback. To my surprise, there was hardly any. Indicators can certainly help, but in my opinion, only after a lot of screen time and understanding price action first. Anek's thread and this thread is absolutely the best.
jjrvat, How do you calculate your Pivots? I calculated the PP for the NQ on May 2 as follows: (H 1985.75 + L 1921.50 + C 1983.25) / 3 = PP 1963.50 In your chart it appears that you arrived at your PP of 1980.50 by using 1971.50 as the previous dayâs low, or are you using another calculation for Pivot Points? Thanks for the great thread. Evolution
Are you using previous day chart to determine support and resistance, like low of day, high of day, midpoint, close. open?