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>One simple approach that is not too bad is to use two moving averages of
different lengths.
I prefer this method : I look at a chart and determine what the obvious
trend is. How do you know what the obvious trend is? Show a chart to any
10 year old and ask them what the general direction of the chart is UP or
Down. Once this is determined then I enter the market with a trade size
thats too big for my account in the opposite direction. Then hours, days
latter my broker calls me and either tells me I'm a genius or he wants more
money, at this time I know what the trend really is.
What I'm trying to get across is the following : If you can determine the
trend thane its too late to do you any good. You should either ignore the
trend or have a fail safe reversal in your system that automatically buys a
break in the direction of the trend. Until then you need to go about your
merry way trading chop ranges, or occupying your time in some other
constructive manor. If you dont you'll likely die of boredom waiting for
that trend that can only be identified after the fact.
MB
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