trend following

Discussion in 'Technical Analysis' started by caotrader, Nov 15, 2008.

  1. caotrader


    Any one could give me some technical analysis that can capture or follow the trend?
  2. Check out the book section on TA on here thats a start.
  3. Price and Volume.

    - Spydertrader
  4. Boib


    Pick a moving average. Buy when it crosses above it and sell when it crosses below it.
  5. ==========================
    C-Trader,good question;
    Actually an excellance place to start;
    50 day moving average,200 dma.

    I think William o Neil names a margin call or a 200 day moving average[price cross below] ''late sell signal''LOL

    Add wisdom & 10.000 hours study, may be helpful also;

    & for a trendy benchmark like SPY, add 2 colors/ volume.......
  6. kut2k2


    Buy when what crosses what?

    I realize the MA crossover is a losing strategy but you still have to give complete details if the OP is going to learn anything.

    P.S. to OP: MA crossovers are losers. :)
  7. caotrader


    yes, I have tested this, but I am using 1 min data, does that still work?

    Also, a simple question is, if it works, why there's still people losing money...
  8. mike007


    Just study this chart. ;)
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  9. Boib


    Sorry about that. When the price crosses and closes above the MA.

    So if it's a losing strategy just reverse it. Sell when the price crosses above it and buy when it crosses below it. :D

    Whatever you do have an exit strategy.
  10. <i>yes, I have tested this, but I am using 1 min data, does that still work? </i>

    If you're using 1 min data use charts that make quicker turns

    Try the default macd 26,12,9 and compare it with 13,6,5 it will reflect your 1 minute trends better. Also if you're trading something that quick learn everything you can about CCI and plot it with the macd's.

    CCI will signal better exits and save you a heartattack or three.

    #10     Nov 20, 2008