i have studied and closely experienced many indicators and techniques of stock trading.
all are good.
but each thrills to kill
each flatters to deceive
if not, then it is too difficult to interpret accurately and timely
i love my indicators like my pets
so, i never had the heart to tell them that they were good but not ultimate.
but, hearts of hearts, i was looking for
a simple
and effective
and universal
and almost foolproof
trading method!
finally, i have one
that was always around but always ignored
that was too simple and therefore mistrusted
that is not perfect but much better than all others.
it's shortcomings?
it demands some blood during valleys and plateaus of ranges
---
it's benefits?
well! there are so many!!!
operators fear it like ghosts fear the cross!
---
and here it is:
"simple moving average"
how to use it?
when priceline cuts sma34/30min line on 1month chart from above = sell
when it cuts it from below = buy
ALWAYS be in the trade, whether long or short
even when there is blood in your hand
if you need to switch sides more than thrice in quick succession
stay away for some time
you may be passing thru range-bound turbulence
---
why have i chosen 34/30min?
whipsaws are minimum in this setting.
(this setting is allowed, rather automatic in google finance. many other software or charts allow sma 34 but not with 30min tick interval)
if you can follow the above method ruthlessly long enough
and if the brokerage is not high
then the pain of ranges will be fantastically offset by the gains of rallies!
---
1 comment:
DEAR SIR .THIS TECNIQUE IS OK FOR INTRADAY ALSO ,THEN WHY U GIVEN 1 MONTH CHART ,IS IT RELEVENT TO USE FOR INRADAY ? PLEASE
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