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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: mikeman who wrote (10952)	8/11/2000 12:43:13 AM
From: Richard Estes	Read Replies (2) \| Respond to of 12039

Kids are treasures at that age, take advantage of each minute. The present variable MA uses Chande's CMO for it volatility variable. As set up it gives terrible reads at the higher period settings. I prefer the VHF setting as found in the "hidden" VMA. It doesn't lag as much in MAs above 16 periods. The TS is very fast, so slow it a bit with a horz shift to right. Short term = 8 periods, mid term= 34 periods, long term = 89. MAs are a final sell or buy point with me. I use tons of indicators, but for a simple method of trading you can't beat a good MA system. So for those that believe in K.I.S.S., you can't beat a fast MA that tracks price in keeping with your trading perspectives. When you decide the fit, you don't want to be in a trade that Price has broke in wrong direction thru your MA. Other indicators might take you out before but don't fight a good MA signal. Thanks for kind words in private mail. I ignore noise and understand where it comes from, it is like spam, only the naive believe it.

To: mikeman who wrote (10952)	8/14/2000 2:43:07 PM
From: Monty Lenard	Read Replies (1) \| Respond to of 12039

Well I see you have found the secret of getting along with Richard....just agree with him and you will continue to be in his good graces....disagree with him and he will discard you or sail off into the sunset in his rusting old barge not to be seen again.

To: mikeman who wrote (10952)	8/14/2000 8:09:53 PM
From: TechTrader42	Read Replies (1) \| Respond to of 12039

Mikeman: You should consider reading Tushar Chande's "The New Technical Trader" to learn about variable moving averages. Chande is someone with genuine knowledge when it comes to TA -- a widely respected analyst, not a self-professed expert; a scientist and system developer, not a guru seeking a devoted following; and a money manager who focuses on winning systems and risk control, not a gambler. You can read about those topics -- money management, risk control and system development -- in Chande's later book, "Beyond Technical Analysis." Both are published by John Wiley & Sons. You can try to finesse your trades with all sorts of moving averages -- even with a ton of indicators -- but in all likelihood, you won't improve your results. You could accomplish much more by trading with a simple moving average than by using all sorts of elaborate variations found in TA curiosity shops. The secret is not in finessing your entries and exits with ever more elaborate moving averages, but in finding a system that you're comfortable with and managing your money well. Chande writes at the beginning of "The New Technical Trader": "There is no shortage of indicators in technical analysis. We know an indicator is a mathematical formula for analyzing price action based on prices, or volume, or both. One popular software package has over 50 built-in indicators. The sheer number of price-based indicators suggests the question: Are any redundant? In fact, there are strong similarities between price-based indicators, and using them simultaneously creates redundancy." Be wary of convoluted indicators and systems. Give TA gurus a wide berth. Focus on the basics and trade prudently. The goal of TA is to make money, not to collect indicators and systems.