Is it better to...

Discussion in 'Technical Analysis' started by dafong, Nov 17, 2008.

  1. dafong


    let's say you use SMA(20) as your support/resistance line. Would it be better to chart premarket or from previous close? For example, if i'm using SMA(20) on a 3 min chart, when the market opens, the SMA(20) will include the 1 hr premarket if i chart premarket or the last hr of the previous day.
  2. apak


    sssiiiiiggggghhhhhh :(

    if only I had me when I was young, to counsel me

    NO it is best not to use MAs at all,

    you see my young starter uper, by switching to higher timeframe MAs you are not getting rid of your whipsaws you are simply slowing down the rate of signals

    thus making it appear that you are using better signals

    so it will take you 6 months to blow up instead of 2 months

    but if you really really want to use MAs then don't use it when they are based on pre open data or previous day data

    simply hide the pre open data and let your MAs develop minute after minute