SMAs - what are they good for

Folks here asking for "setups"
How does a successful trader to that?
Here's a siimple one
Simple Moving Averages

Loads of good tutorials on TA.
I use Stockcharts.com.
Huge documentation.
And here's why people use SMAs
(loads of smart TA folks here as well)

SMA TA rules:
The 50 SMA must be above the 200 SMA
And the prices need to be above the 50 SMA
Not happening with SPX




$NDX getting ready to "crater"
(should be 200 SMA, not 200 SDA)



Here's a good looking chart:
(and certainly not good to be long most stocks here)
50 above the 200
AND prices over the 50



Here's a decent one, but I wouldn't want this as a long:



Here's the best 2 for me, best charts
Prices on top, then the 50 then the 200
(of course others here have all kinds of favorites)

 

%%
I like the way some traders hate ma\ they say ''too much lag''.
LOL Perfect;
markets dont work when all try to do the same thing....................................................................................................................................................................................

 

I prefer EMAs. I think they serve as useful reference points, but I personally don't use them to signal trades. I use price action itself to signal.

 

I used to trade the moving average where i would buy below the line for a + slope. Vice versa for sell.

The idea is that the moving average represents "value", jsut like a vwap. I think the slope is more significant than where price is relative to the moving average itself. Keltner is basically a way of doing it by using ATR mulltiple around the average.

You can easily create a strategy where you can set limit for slope to trade the trend, and if it falls below a certain number, play the mean reversion.

 

I'm with you in this one, cB.
I like em be they simple, smoothed, weighted or exponential.
The spaces they 'define' can make for some interesting launch and target areas, e.g....

 

Laaaaaag.

edit: to add curve-fit anyone.

 

resuuuults.

 

if you're a trend trader trade near or at the ma

if you're counter trend trader, trade away from the ma

there ya go, system.

 

This is why I hated indicators like MA with infinite settings. I mean why 50 ma not 45? why 200 not 180?

Then you have the smart guys using 13..like wtf. 13?!?!