Question for the Technicians and Traders out there?

Discussion in 'Trading' started by mschey, Jan 12, 2007.

If price is trading below the 50 Day MA, and rises and hits it, what should I do?

Poll closed Feb 1, 2007.
  1. SS or exit long at the 50 day MA

    9 vote(s)
  2. Do nothing, the 50 day MA doesn't matter

    19 vote(s)
  1. Boib


    If you think it will go higher buy
    If you think it will go lower sell
    If you are wrong close your position:D
    #11     Jan 12, 2007
  2. If I'm reading this correctly, you would have made money twice by fading, and then gotten obliterated on the 3rd time hitting (and going through) the 50MA, which is pretty typical of the "power of threes".

    #12     Jan 12, 2007
  3. right

    thats why i put up the chart, not every touch of the 50ma is a short, you really need to know where the overall picture is

    "power of threes".

    that makes alot of sense , I see it all the time, 3 touches on a trendline after a run up and three exact moves down before they turn up, thats what i'm saying, where are you when the price hits 50 and is it a 2 day 2 minute chart like the one I put up, whats the 10day 30 day 60 day and 1 and 2 year charts say

    just don't the first guy to always dump on a moving average, theres always something going on to left to look at

    maybe you could give more advice on the 3 stuff

    if I get a chance i'll post some charts where I've caught some good 3 action
    #13     Jan 12, 2007
  4. A simple exercise for traders to see the power of threes, is to watch the S&P 500 pivot points during the day. You can go to each day to see what they are. Then watch how often the trading troughs (between the pivot points), hold the tick by tick action....then you break a resisistance pivot, and it becomes the temporary support pivot, etc. This is one of the primary decision makers for intraday entry/ exit of stocks.

    #14     Jan 12, 2007
  5. thats funny that you say the s&p because I was going to say i see the 3 thing in ym alot when its running or dumping, if it dumps 40 points and goes up about 10 it dumps about 40 again and again after a run up

    heres a chart of the es 3 runs of about 12 points each and it just ran from 1428 to 1440 and pulled back a bit
    #15     Jan 12, 2007

    3 moves in the ym this week all about the same

    I see alot of guys who say the cosolidation is the half way point and it seems to wrk pretty good for targets, must be alot of people trading it, it seems to line up with the overhead resistance alot of the time
    #16     Jan 12, 2007
  7. bellman


    fyi, the poll was relative to the 50 DAY ma, and your chart shows an example of when it has been trading below the 50 period ma (2 min periods). depending on your philosophy what holds true for one time period may or may NOT hold true for another.

    it is a good chart (, but one chart does not prove anything.

    for the poster who requested other technicals and fundamentals, that does not apply to the question.

    can this single technical provide a clue as to which direction and (magnitude of the vector)? it was worded vaguely, but sometimes it is helpful to look at a single indicator alone. sometimes a single indicator only has meaning as a confirmational tool.

    as for the talk of the rule of the three bs, sounds like someone has been reading a few too many lord of the rings type novels.

    #17     Jan 12, 2007
  8. bellman


    exactly! healthy criticism.
    #18     Jan 12, 2007
  9. Moving averages for the most part are useless.
    #19     Jan 12, 2007
  10. hi mschey,

    1st answer to the question: do nothing because I am not sure.

    After seeing the chart,
    2nd answer to the question: do nothing because at that point price is comfortable rotating inside a range - in balance.... It could go either way.
    #20     Jan 12, 2007