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Moving Averages

Started by AussieTrader, May 24, 2005, 10:48:55 PM

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AussieTrader

If you are interested in all my charts I use the 9, 20 and 33 day ema in conjunction with the 50 and 200sma and finally the 200ema.

Everyone I guess has their favourites, but I have found the 9 ema to be a great support / indicator of a stocks strength / weakness especially on breakout stocks which then pullback on low vol to the 9 ema usually signalling further upward move. I track the 20ema as this also supports well if pullbacks don't respect the 9 day. The 33ema is a good mid range support area guide.

The 50 sma is quite a key longer term average and comes into play a lot especially on large pullbacks and signifying resistance.

Finally I have the 200sma and the 200ema I use both as a cross ref as volatile stocks can have a big difference between these 2 points. Either of the 200 can give great entry points on downturning stocks and also gives great indication on resistance on beaten up stocks which are breaking out. E.G I have seen many time a breakout which will go through the resistance of 200 sma and stop / pause at the 200ema, so if ai didn't track both I'd be missing a key tool for entry / exits risks.

Well enough of that, hope it's of interest.
Mike
AussieTrader
www.3stocksonfire.org

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AussieTrader

That is on daily or weekly charts by the way.
Intraday I use 5 min charts with 9ema ann 200ema
AussieTrader
www.3stocksonfire.org

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J.Livermore


I use the ema 200/50/25 just for benchmarking  ;)
Jesse Livermore
I love Thursdays, specially the Black ones...

eliteG

great topic.  Have you ever heard of moving average ribbons?  Here is an example.  When the avg expand it shows a trend, contract consolidation.  Makes the chart look aive and breathing almost.  Lots to see.