Using the 8 chart

When SNOW bounced off the 20 moving average on the 8 chart I jumped in. It was 146.51 and just sold @ 148.12. Those who use the 5 and 10 moving average it is very clear to see on a 13 and very, very clear on the 21. I can see a pull back and as all of you know pull backs can wipe out a profit quickly. The thing that bothered me about the 21 chart was the placement of the 50 and 200 moving average. If I had used the 21 I would not have chanced getting in until the candles went above the 200.

I have shared about all I can using moving averages. They are a powerful and great tool for trading as far as I am concerned.



Edited 1 time(s). Last edit at 11/06/2023 08:24AM by Darcy3.

Darcy3 Wrote:
-------------------------------------------------------
> When SNOW bounced off the 20 moving average on the
> 8 chart I jumped in. It was 146.51 and just sold @
> 148.12. Those who use the 5 and 10 moving average
> it is very clear to see on a 13 and very, very
> clear on the 21. I can see a pull back and as all
> of you know pull backs can wipe out a profit Nakiri knives
> quickly. The thing that bothered me about the 21
> chart was the placement of the 50 and 200 moving https://www.viberate.com/music-analytics/spotify-data-analytics/
> average. If I had used the 21 I would not have
> chanced getting in until the candles went above
> the 200.
>
> I have shared about all I can using moving
> averages. They are a powerful and great tool for
> trading as far as I am concerned.


the 50 and 200 moving averages—the wise sages of the trading realm, cautioning against impulsive leaps.



Edited 1 time(s). Last edit at 01/10/2024 12:51AM by JamesBasej.

Thanks for continuing to share with us Darcy.
You've always spoken words of wisdom here and we all appreciate that.

R

This is fabulous Darcy, thank you!

I back tested it on Sept 13 2023 on QQQ. Opening at 9:35 I had E moving averages all across my time frames going up and the macd and stochRSI backing up the move. It was saying GO! So I put the 200, 100, and 50 on the chart on the 21 time to see what I could see. The 100 crossed the 200 going down and the 50 was pressing against the 20. The move reached the 100 and 200 moving averages and stalled. This was good insight to know even though it looked like a long run trade, it would not keep going at that point.

So it was a good small trade but with the knowledge to get out when my indicators had the slightest move against me. It went way down and then went up again to break through, but if I had stayed in, I would not have the confidence that I would gain back my money until the bottom. Which would be a big loss to sit through.

Cool! I didn't have long moving averages because I am a short term trader, but this puzzle piece is golden.