04-03-2021, 09:41 AM
(04-03-2021, 09:10 AM)NilesMike Wrote: My 2 cents in the Moving Average method. Technical analysis is not magic but the MAs represent common sense IMO. 50 day is so popular because it represents the price for the past year, do you want to be long under that price level? Not me.Happy Easter to you as well.
If people would consider what things represent it would make much more sense to them.
Similar to an opening price (ANY opening price-day-week-month-year) on the timeframe which you are trading. You will NOT find me long ES, below that opening which I am referencing from. Doesn't make sense to me to think that I know where the turn will come (although on ES I do have a good idea) I would rathe be long when price IS going up and short when price IS going down.
Good luck to all and Happy Easter to those whom it applies.
The MAs do represent common sense. A lot of the other technical indicators seem more random to me. Other than a significant change in a stocks fundamentals or an earning report, I don't think anything is a more important trigger than a stock crossing a major MA. I've watched some of my stocks do a years long battle with support or resistance at the 200DMA. The 50DMA seems much more significant for the trading strategies being discussed here. With triple leverage it would seem a lot of money could be lost between the 50 and the 200.