However, Dinoman, it is baseless to tell this man that they have no benefit to him. As you state you have reached a stage where they are useless to you.... But that does not speak for him.... There are charts I trade with zero indicators aside from price, and those I dont. Yes, Price is king.. But again to tell him they are baseless, or a waste of time is incorrect....
LOL. No its not! They are baseless when they are calculated off the main indicator. It's like a car saying it takes 5 quarts of oil, but I am gonna try to do it on the cheap and put 3 quarts of oil in, and hope it is ok. I guess that would be ok if your just trying to keep your job, but if your trying to excel I would assume it would'nt.
I didnt get this as a MAIN indicator. I read his request as a filter of sorts.... Like a car needing air but not using an air filter at all. Everything is presented to the engine which will eventually cause carbon buildup and choke the life out of it... As a filter, MA's can help weed through the thouands of stocks out there and help you zero in "more closely" the ones that may hold some promise..... Otherwise he would kill lots of time sorting through 8K + stocks everyday.... Like you would kill time every day cleaning out your clogged intake manifold.... Just to drive to the grocery store...
====================If price reverses it takes a MA x amount of periods to confirm that, leaving it a lagging indicator.====================== there is a way to remove that lagging indicator aspect of it, and no its not another MA.
In that aspect I guess you have a point. I personally don't allow for slop. I focus on precision only, which may difer from the main inquiry of this thread.
One such example in my trading. I used Trade Ideas which alerted me to the fact that DNDN was involved in a breakout back in March. When I looked at the chart I so upward movement, bought at $4 and sold at $20... That MA setup in TradeIdeas alerted me to a POTENTIAL profit situation.... I didnt make my decision based on the MA indication, I made it based on price and volume.... Had that not been there, i doubt I would have ever seen or heard of DNDN. Same with PTT whcih ran from 2.50 to 11.50 when I left, REFR, JADE, BRLC and a few others I decided to jump on. Mainly I trade futures. But when a stock starts running, MA (filters) alert me to the potential. Price is always your guide....