5 replies to this topic

[hiker]

51.20's...probably remains a bullish short term chart while above 50.90's a gap was filled with throw over pricing on Friday..who knows from here. that is why I closed SDS. SPX cash is yet to move below the 5sma on the 60min on any sustained move today....let's see what happens from here. NATI weekly is worth a look today on horizontal zone 33-34 tested...PnF chart bullish setup may become even more bullish if you look back to 2004 price highs now being challenged..more recent highs remain above...

[kamakazeman]

SPX cash is yet to move below the 5sma on the 60min on any sustained move today....let's see what happens from here.

Apologies for lack of knowledge, what's a/the 5sma?
thx
mike

[hiker]

five-period simple moving average (sma) can be plotted on any timeframe 1 min chart 3 min chart 13 min chart 60 min chart daily chart weekly chart monthly chart 5-period exponential moving average (ema) Jae Yu at undergroundtrader.com wrote a TA book based on the 5 and 15 sma's and the 200 sma, and the displaced 3 ema among other TA items for daytrading and swing trading futures and equities. Worth considering especially if you are in to minimizing trade whipsaw..his book is great with a trading system thoroughly explained

Edited by hiker, 18 June 2007 - 10:08 AM.

[kamakazeman]

five-period simple moving average (sma) can be plotted on any timeframe

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OK!
and thanx a lot for the references.

One reason I asked is/was that the spx had moved & closed below the 60 min 5sma at the time of my reply query, so first I thought to enquire.......
so I suppose that the real question would be what will constitute a sustained move...
I see that the current bar is turning the 5sma flat to even a little uppy even tho it's at or just below the 5sma ...so while the sustained move down is stalling currently, what would be considered sufficient to generate confidence in a decline?
thx again,
Mike

Edited by kamakazeman, 18 June 2007 - 10:52 AM.

[hiker]

would not short until the displaced 3 ema, which is the 3, -3 custom setting for an ema at Stockcharts.com, makes a bearish crossover of the 15 period sma... this will avoid whipsaw and will force you not to anticipate....if you actually wait for a bearish crossover of those 2 MA's to short, it is what is considered a "confirmed" sell signal worthy of a short trade with follow through to the 20 SMA as a miniimum and perhaps to a 200 sma on a shorter timeframe from what you are taking the signal. try a 13minute chart if you have access for such a trade signal....15 minute if you must...never fight the 13 min signals per Jae Yu and my experience using his system validates that...once the 13 min goes into a buy signal or sell signal, the 60 min often follows suit..though once the 200MA resistance or support is tested on the 60 min, wait for a confirm of price vs the 200 MA to see if the daily will follow the 60 min do not have time now to go through what represent a buy signal OR a sell signal...see page 17 and 18 of his book..describe above is only the short sell signal thanks for asking Mike. appreciate the conversation. you do not need a crystal ball to determine trade entries and exits if using such a system...what is happening other than price in the equity or ETF being traded can be ignored because all else besides price action is a distraction.

Edited by hiker, 18 June 2007 - 11:04 AM.

[kamakazeman]

thanks for asking Mike. appreciate the conversation.

you do not need a crystal ball to determine trade entries and exits if using such a system...what is happening other than price in the equity or ETF being traded can be ignored because all else besides price action is a distraction.

I have always thought so too. Avoiding distraction is sometimes difficult........
ANYWAY, is that a legit triangle/flag that the 60 min spx was trying to break out of to the upside just a few minutes ago?
mike