Friday, August 17, 2012 10:42:55 AM
3day average
That's good...thanks...
Alex...you got a place for this...intro section...?
"MA is considered to be a lagging indicator. What this means is that it always lags behind the price action. MAs also has a tendency to whipsaw a lot when the market is not trending strongly making them somewhat unreliable in giving trading signals. Nevertheless, MAs are a very useful tool in the arsenal of any trader and are widely used in different trading systems."
...so... the above statement is not totally right (not totally wrong...just FYI)...how many whipsaws is the 3day avg giving...
Now change price into a one day moving average...
Pay attention...this is the amazing thing I hinted at=What is frequently happening at the one standard deviation line...?...=Price cross 3 day and deviation line...
This is how important the one deviation line is...and a simple moving average crossover...simple as 1-2-3-trigger-trigger...
This isn't rocket science...
Simple as 1-2-3-...trigger...trigger...trigger
I wish rocket science was this easy...
Enjoy...
Ki...Kiy...Neph...theMatrix
Why 3 day average...On the chart I can take away the outer bands of the double Bollinger Bands and add a 3EMA. SIMPLE math for a moving average requires that price needs to close on the other side of the avg. to change the total of the average to start turning the other direction=signals a potential change in price direction; and if continues will create a change in direction/trend...if this happens from oversold/overbought levels you have a "trigger" that is going to most likely set the 3 day moving average in motion=one of The Laws of 3...3 day is in motion and price cuts through 5day avg. 3day continues to follow crossing 5 day (5 day follows 3 day avg.) and price cuts through 10day and the 3 and the 5 day follow...by the time 3 and 5day are below the 10 day average...you likely have a change in trend and all of the averages have reversed...also a common definition of TREND is that it takes 3 days to make a trend...=re-write it =it take the 3day average to change a trend...that was the Law of three and was the Quest I had Ziko on...the Grail QUESTion continues...tell me which is the more important...the 3day...5day or the 10day average...? If you have been paying attention the answer has been stated here...
These...triggers will have certain technical indicators reversing at the same time...mainly the stochastics ...and momentum picks up as you see the 3-5-10 triggered by price and confirmed by the 3 day crossing the next average (also a trigger)...(should make one ask what stochastics is doing as 3day continues; this is one of the reasons why I say stochastics is the best indicator)...
On a 10,2 Bollinger a reversal from overbought/oversold suggests=mean reversion= a return to centerline (50% on the %B))...The Law of 3s suggests that nothing happens until the 3 day moving average trigger happens...so quit speculating...be patient and wait for this first trigger(signal) and maybe the next trigger to place your bets...
That's good...thanks...
Alex...you got a place for this...intro section...?
"MA is considered to be a lagging indicator. What this means is that it always lags behind the price action. MAs also has a tendency to whipsaw a lot when the market is not trending strongly making them somewhat unreliable in giving trading signals. Nevertheless, MAs are a very useful tool in the arsenal of any trader and are widely used in different trading systems."
...so... the above statement is not totally right (not totally wrong...just FYI)...how many whipsaws is the 3day avg giving...
Now change price into a one day moving average...
Pay attention...this is the amazing thing I hinted at=What is frequently happening at the one standard deviation line...?...=Price cross 3 day and deviation line...
This is how important the one deviation line is...and a simple moving average crossover...simple as 1-2-3-trigger-trigger...
This isn't rocket science...
Simple as 1-2-3-...trigger...trigger...trigger
I wish rocket science was this easy...
Enjoy...
Ki...Kiy...Neph...theMatrix
Why 3 day average...On the chart I can take away the outer bands of the double Bollinger Bands and add a 3EMA. SIMPLE math for a moving average requires that price needs to close on the other side of the avg. to change the total of the average to start turning the other direction=signals a potential change in price direction; and if continues will create a change in direction/trend...if this happens from oversold/overbought levels you have a "trigger" that is going to most likely set the 3 day moving average in motion=one of The Laws of 3...3 day is in motion and price cuts through 5day avg. 3day continues to follow crossing 5 day (5 day follows 3 day avg.) and price cuts through 10day and the 3 and the 5 day follow...by the time 3 and 5day are below the 10 day average...you likely have a change in trend and all of the averages have reversed...also a common definition of TREND is that it takes 3 days to make a trend...=re-write it =it take the 3day average to change a trend...that was the Law of three and was the Quest I had Ziko on...the Grail QUESTion continues...tell me which is the more important...the 3day...5day or the 10day average...? If you have been paying attention the answer has been stated here...
These...triggers will have certain technical indicators reversing at the same time...mainly the stochastics ...and momentum picks up as you see the 3-5-10 triggered by price and confirmed by the 3 day crossing the next average (also a trigger)...(should make one ask what stochastics is doing as 3day continues; this is one of the reasons why I say stochastics is the best indicator)...
On a 10,2 Bollinger a reversal from overbought/oversold suggests=mean reversion= a return to centerline (50% on the %B))...The Law of 3s suggests that nothing happens until the 3 day moving average trigger happens...so quit speculating...be patient and wait for this first trigger(signal) and maybe the next trigger to place your bets...
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