Strategy Central

[shortterm]

Wrong timeframes my friend....

You would not use 200 and 50 period MAs to do short term trading. By definition, no matter what timeframe you use them, the cross overs are for long term. What you pointed in your chart could well turn out to be very profitable trade. At the end of the day, one would have gone short around 37 and a month later would be about the same place. But even then, it would have been foolish thing to do. The normal thing is to wait for confirmation which in this case was available if your personal rule is the pretty standard 3 day on closing basis. That would have taken you short around 38.5 which is not that bad, is it?

The biggest problem people have is to not do anything. I know that problem very well, it has cost enough money to me Being out of the positon can be so difficult. Always know which time frame you are trading and what is taking place in the one time frame above and below! The one above tells you when not to push it (stay away from the avalance (up or down)) and be nimble enough (don't let winners turn losers; another sin of beginners: perfect entry but no idea of exit. Greed got better of them. Very easy to do with futures in particular.) The shorter term time frame allows you to get better entries than you would get just following the time frame you actually trade.

If you trader, those are probably only things you need: three different timeframes: one above and below to the what you actually want to trade. The rest is important for the market direction but not for your trading.....