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


To: SteelBlueIce who wrote (9904)3/17/1999 12:54:00 PM
From: TA2K  Read Replies (1) | Respond to of 12039
 
“What have you found in your work on moving averages?”

This reflects some of my thinking so far....

Immensely important. Allows one to see the forest from the trees. Best used on different time frames – intra-day, daily, weekly, monthly, even (though to a far lesser extent) quarterly. Go back a good way – I go back to January 1990, through to the present. The patterns that emerge basically tell the firm/industry/market story first-hand that the Wall Street analysts tell second-hand.

One can see changing support and resistance levels over the years.

From a trading standpoint, first the basic objective of the ‘game' for the player should be stated – for me it is making the greatest amount of money in the shortest amount of time. So, as for moving averages, it's difficult to know whether to play the ‘climbing out of the great troughs' or the ‘momentum up the big mountain.' I still have to do system testing on this.

Thanks