Comments on: Misconceptions: Magic Moving Averages

By: Richard

Richard — Sat, 11 Oct 2008 19:33:28 +0000

Not sure who you are talking to here, Rick. The post didn’t say “technical analysis doesn’t work.” My whole business is built on technical analysis. The point of my post was that people assume a-priori that certain MAs will be spport, whereas I believe the better approach is to wait for the MAs to establish that they are support (via evidence that people are taking action near them). Regardless, good luck.

By: Rick

Rick — Sat, 11 Oct 2008 14:39:32 +0000

Nothing guarantees success in stock trading; however, there is a tendency for stocks that uptrend to pullback to certain moving averages before moving up again. There are no guarantees, but a person can increase their probability of success through technical analysis. I personally practice risk management on every single trade.

By: Quick Scalp on GNTX -- Move the Markets

Quick Scalp on GNTX -- Move the Markets — Mon, 23 Apr 2007 18:45:12 +0000

[...] pretty awesome, eh? Nudged right up against 19. Has “support” from the 5EMA (heh…). Anyway, I scalped it for 3R, but it looks like a decent dummy [...]

By: Afraid to Trade.com Blog - Overcoming Stock Market Fears » Link: Thoughts on Moving Averages

Sat, 14 Apr 2007 23:25:49 +0000

[...] at MoveTheMarkets posted an insightful analysis arguing against “magic moving averages,” and the entire post is absolutely worth a read for deeper study. I have included a few [...]

By: Richard

Richard — Wed, 04 Apr 2007 20:46:55 +0000

@yo: thanks. I’m much more comfortable interpreting shapes of daily candles, because at least there is an actual trading break between them. Even then, I think it pays to drill down into them, a bit, to see what really happened.

I do think there is a small effect, where surges of volume do flow into stocks near 30min boundaries. And of course, since everyone nowadays learns the standard candle shapes, you can see the effect of the believers acting on the shapes they see. But, I think these are minor compared to, say, resistance at round-number prices.

By: yo

yo — Wed, 04 Apr 2007 20:17:59 +0000

I applaud you for recognizing that a shift in time periods changes the shape of candles. Another certain highly viewed traders site, which relies heavily on the shape of candles, refuses to acknowledge that candle shape is can show something completely different if the candles just rolled over at a different fifteen? minute time period.

By: High on CEPH -- Move the Markets

High on CEPH -- Move the Markets — Mon, 02 Apr 2007 20:20:21 +0000

[...] I traded Cephalon, Inc. (Public, NASDAQ:CEPH) today, as an OR breakout. Due to my poor performance the last couple of weeks, I approached this trade with caution, meaning a later entry, a smaller R-size and conservative profit taking. There weren’t a lot of setups out there today, but later I saw CEPH break above the OR high, along with the magic 5-ema: [...]

By: Born2Code

Born2Code — Fri, 30 Mar 2007 18:39:31 +0000

john, if you have immense success with the new blend of ingredients — as no doubt you will — then you owe it to us to bring back the Tale.

By: john

john — Fri, 30 Mar 2007 02:50:18 +0000

B2C and Prospectus: i will add that tomorrow…i think its the missing ingredient…i am also going to incorporate the 1 tick chart with the 1 period ma

By: Prospectus

Prospectus — Thu, 29 Mar 2007 23:35:52 +0000

B2C: You should try the -1 period ma. It nails the close every time. Freaky…