Scataphagos, if you happen to see this post, please understand that I am not anticipating it will carry a single ounce of weight with you, and having now fully developed my system, I’m not feeling much need or inclination to respond to any positions that contradict my own. I just happened to see your response when I returned of this thread to check if I could figure out why it might have caused me to pick up another (a third) follower, and I had a reaction that I wanted to record for the following reason… I’m currently writing a book that explains my methodology, and by writing my thoughts on certain entries posted on this website, I find it helps me in that endeavor, with the post cited below falling in that category. Hence, the following is specifically meant for me, and is not written as a response to your post per se (though it will of course seem that way), but is simply an exercise and resource I can return to in the future when I am ready of write the relevant page(s) of my publication. In fact, I would say that prices almost always cross back and forth across moving averages. My system uses moving average envelopes as a major aid to establishing levels of support and resistance—not the moving averages themselves—which I use to clue me in on price direction and trend reversals. But because I use, not standard, but specific, painstakingly selected moving averages designed to tell me the whole story when it comes to market sentiment, I know exactly when to go short and when to go long, whether the market is trending or range bound. It is impossible for price to pass through one moving average without my being informed by another, so that (at this point) I am rarely surprised by anything price does, if ever. The particular collection of moving averages that appear on my charts (for the most part) make sense out of everything I observe price do.
Wow, old skool! Even Tibco, owner of S-Plus, are offering an R environment. Their last release of S-Plus was eight years ago.
You didn't only disparage, you discouraged. Nobody asked you for a psyco analysis, Herr Dokter Freud. If you have no answer to the question at hand, there the option of skipping. Even if what you say is true, is he alone in that situation ? Why single him out? Never forget that so far as you are in the markets, you are at risk, even if profitable in the mean time. Remember old Livermore ?
%% I had an elite trader man, not trying to offend me, told/noted me about 7 years ago, with an open rebuke; better get more than moving averages......Paraphrase; i was not offended, but if someone did not have a dad or mom or sister that corrected them... They think thats + market makers /specialists are an enemy!!!!!, I may stop trading Argentine[alien]stocks, not a racial statement.....LOL
Depending on your observations skills the moving averages can be a great tool. I on occasion use the 50, 200 and if there is a strong trend, i will use the 20. The 20 plots a lot like the center average on the Bollinger Bands. Moving averages remind us that price moves in waves and personally, I use them as a momentum gauge. In the old days they would say bears like markets that trade below the 200 and bulls like when price trades above the 200. Its best to draw your own conclusions and not be discouraged by the Naysayers. Trading is personal, we all seek what works for us. Good hunting.
[Partial QUOTE="Zodiac4u, post: 4654383, member: 46828"]Depending on your observations skills the moving averages can be a great tool. I on occasion use the 50, 200 and if there is a strong trend.... Moving averages remind us that price moves in waves and personally, I use them as a momentum gauge. In the old days they would say bears like markets that trade below the 200 and bulls like when price trades above the 200. Its best to draw your own conclusions and not be discouraged by the Naysayers. Trading is personal, we all seek what works for us. Good hunting.[/QUOTE] %% They still say/note that. Wisdom is profitable to direct. I have been known to cut a smaller ma, too many comissions. Of course if you got a NYSE seat like IBD founder, may want to use 50/200.
%% No wonder you like the 834.556 moving average; most traders/investors are not going to record one that hi or long.Some like IBD, substitute a 40 week ma for 200 days. I like 50.000 week moving average ; it lags more than a 40 week+ less commissions[aka 5,LOL]