Support & Resistance levels , and moving averages are just meaningless lines on the chart.

Discussion in 'Stocks' started by wxytrader, Sep 26, 2023.

  1. .

    Appreciate your POV... my experience has been different, perhaps because of the method for deciding when to buy in an uptrend and sell in a downtrend indicated by the MA slopes.

    My stats are good when entries are only taken at the ends of dips during the uptrends, when prices have started to rise again, and only at the ends of rallies during the downtrends, when momentum has started downwards again.
     
    #31     Sep 27, 2023
    themickey likes this.
  2. I must insist. In an uptrend you need patience. In a downtrend there is "action". At least in short intraday movements. Hence I am great at shorting and suck at buying uptrends :D
     
    #32     Sep 27, 2023
    themickey likes this.
  3. Why would we wanna do that?
     
    #33     Sep 27, 2023
  4. darktv

    darktv

    Indicator are just tools you can use MAYBE to confirm your thesis (They are always delayed).
    It's worth noting that no trading strategy or tool can guarantee 100% success or eliminate the risk of losses.
    The markets are influenced by a multitude of factors, including economic events, geopolitical developments, and investor sentiment, which can lead to unexpected price movements.
    Without forgetting HFT, DMM or their equivalent, hedge funds etc aka the suits!

    Imagine if someone has an indicator/chart pattern with a 90% success rate, he will start a hedge fund not sell books / make youtube videos nor discord about his studies/indicator :D

    There are a lot of charlatans out there that pretending to be GURUs but would even know who's Richard Donchian! ;-)
     
    #34     Sep 27, 2023
  5. themickey

    themickey

    Let's put it another way, there are far superior methods to moving averages.
    MA's really are very clumsy tools, take a 200MA for example, it basically is roughly the price 100 days ago, it's not accurately 100 days ago price, and what is 100 days got to do with the price of fish. 100 trading days ago is approx 20 weeks or 5 months, it's quite meaningless.
    It doesn't even line up with calendar events such as monthly, quarterly, biannually.
    Yeah ok, 'everyone' uses 200MA, but speaking from years of experience, it's stupid because there are better ways.
     
    #35     Sep 27, 2023
  6. speedo

    speedo

    MA's are tools, some make use of them and some don't. I use them as geographical reference points and dynamic S/R. When my 20ema is flat, I am flat (unless it's a zone entry off a measurable leg)...some will scalp ranges, I don't.

    upload_2023-9-27_13-53-32.png
     
    #36     Sep 27, 2023
  7. darktv

    darktv


    You made laugh thanks! if MA or EMA was magical tool ... have ever heard about Richard Donchian?
     
    #37     Sep 27, 2023
    murray t turtle likes this.
  8. %%
    LOL, mostly right;
    except in the markets where dealers like them or use them.
    No way would i ignore 200days of data or 2,000 days for that matter , even in[ cash metals business ] markets where 200day is seldom or sometimes never used.:D:D
    I like a PSAR sometimes but seldom use it much.............................................
     
    #38     Sep 27, 2023
  9. speedo

    speedo

    upload_2023-9-27_14-43-55.png
     
    #39     Sep 27, 2023
  10. speedo

    speedo

    Daily 50% retrace bounce from March low to July high...also despite Mickey's skepticism, the 200 SMA
     
    #40     Sep 27, 2023