Its been tough sledding as of late, these consolidation periods are murder. During the first hour of the cash markets open, and during lunch I stay out.
doug456, How can you backtest this if you don't know what the criterias are for entry, exit, stop/loss managment, profit targets, types of trading days that are ignored regardless to what the moving averages are doing (like Fed Day or Pre-Holiday 1/2 Days, Dead Zones et cetera)... what about if he/she is strictly a discretionary trader. ??? In other words, your going to need more info/input from the trader using this prior to attempting to backtest this. Further, one of the keys to price moving average signals is having the ability to recognize tight trading ranges (choppiness or tight consolidations)... reason why many good price moving average traders don't trade during the dead zone and are good at recognizing consolidations...something that many backtesters don't understand. Doug456, hopefully jrs3 gives you more trade management info...if not...maybe it's not so simple. NihabaAshi
well it didnt take long for people to start pointing to the tree in one's eye so to speak. jrs, post a chart of this simple system when the price is in so-called "murder consolidation" (your words). pls pick the worst one lets be fair and balanced LOL. anyhow according to you, you only trade this one hour (the last hour) in the day?
Is there any possible way to make all the downward movements red and up green in metastock? I'm using a "price oscillator" (13/20 WMA) and would like to have the same visuals.
The problem I have with looking at a chart with an MA is that because of the constant reconfiguration that the depicted MA line has made throughout the time span of the chart, it doesn't really tell me what the configuration was at the time when any point in that chart was at the hard right side. Maybe it's just me.