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Strategies & Market Trends : Technical Analysis - Beginners

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To: Kiddo8 who wrote (10903)	5/24/2000 2:50:00 AM
From: Richard Estes	Read Replies (2) of 12039

Think of MAs as the moving average of bars.Think also of a MA as 1/2 the total cycle you are trying to measure. So a 13 bars Ma of a 13 min bar has you trying to measure a 26 bar cycle (13x26)=338/60= 5.63 hours on average you would expect a buy/sell/buy in that period of time. While the 200 bar ma of 13 min bar has you trying to measure a 400 bar cycle (13x400)=5200/60=86.66 hours or 11.55 days. Now thinking of that, what are you wanting to achive in your trading? one trade a day? one trade in 11.55 days? Do the same math for all your time frames. In the volatile market of the present and volatile stocks I trade, my trades are measured in hours rather than in days or weeks. My charts and periods are based on that. I use 5 or 13 min charts to trade. and 39 min and daily charts for intermediate and long term views. I always try to use fib numbers for my indicators. 3, 5, 8, 13, 21, 34, 55, 89. 89 is longest ma, I will use. My standard MAs for all charts are 8 bar with 7 bar lead and 34 bar with a 6 bar lead. Remember risk is measured by the distance of your MA from price.

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