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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (514)	6/11/1999 8:44:00 PM
From: Rick Faurot	Read Replies (2) \| Respond to of 18137

<<MA crossovers always have the same problem: they work well in trending markets but give false signals in ranges (choppy markets). Many analysts try to compensate for this limitation by using different filtering methods. I think the best systems view crossovers in context with general pattern reading, so that certain signals can be visually discounted.>> Alan, Thanks for the read. That's been exactly my observation the past few days. I tried trading just off the MA crosses but that was not very reliable. Then I went back to my previous system of looking at a lot of indicators as well as focusing a lot of attention on L2, which I rely on heavily. Had some better results today using the MAs as a reference. They do provide some good information and it is pretty clear to me that MMs are watching the MAs because their trading breaks right off the crosses very frequently. This element of TA is significant to me--the fact that the more I use TA, the more I see that other traders are. By knowing what they are using I get more in tune with their moves. A few more years of this and I think I could be pretty in tune with most of the forces which move the markets. Fascinating prospect. The biggest thing I am learning, however, is to stare at the numbers and go where they go. Everything else is background. Rick Ps. Thanks again for all your help. The Mastering the Trade course really helped me a lot.