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Richartd J. Chehovin wrote:
Try looking at a 3/9/15 Exponential Moving Averages and trade multiple
contracts (2 or more). When the 3 crosses the 9 sell one. If the 3 crosses
the fifteen sell the rest. If the 3 doesn't cross the fifteen you will
still have a contract or two on. This can reduce the number of whipssaws.
It will also increase the dollars of profit per trade and decrease the
dollars of loss per trade. ******POINT IN THOUGHT has anyone considered in
which time frame you use your moving average? If you trade 5 min charts,
what about putting the MA on the next longer time frame( 20 min)? Comments
or ideas welcomed.
B.E.: Try using the Fib numbers of 3, 8 and 21. They do a fair confirming
job on the T-Bonds, when day trading, but you have to be careful when the
market gaps up or down at the open.
Today was a Report Day and the market, having gapped down from overnight
trading, then went lower and reversed sharply after 7.30 - not a lot, but
enough to leave you between the tram lines, as it were. The market then moved
down to hover on the S2 line before trading up to breach the intraday high and
do a 'less than .382' retracement, thus indicating moving north towards the S1
line.
It was at this precise point that the three averages converged to support the
move to higher ground. The further retracement at 9.30 (again much less than
.382) did not breach the 21 bar average - for further confirmation that the
market was continuing its Northerly path. The market finally stalled for an
hour or so between the pivot and yesterday's open and when the three lines met
again... the rest, as they say, is history.
As someone has already said, MAs are good for confirmation or alerting you to
a situation, which must come from the real tools of price action and support
and resistance.
Happy Trading for 1998
Bill Eykyn
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