ETF SWING & DAY TRADING

[gloe]

Not sure if this is what you meant -- he doesn't mean trade off the cross of the LSMA and 34 ema. (I don't think so anyway.) That method does not work, I have looked at it. Because of the way the LSMA is contructed, for example, it will curl UNDER the price (and sometimes below the the 34 ema) just before a good move up.

He means that you trade only in the direction of the "trend" and the trend is defined as whether or not the price is above or below the 34 ema. If above it, only take longs. If the LSMA turns down, you get out of your long, but you do not short because the price is above the 34 ema. You wait for the LSMA to turn UP again, then you go long. It is only when the price falls below the 34 ema that you are allowed to look for shorts. You short when the LSMA turns down, get out when it turns up, and wait for another turn down to go short again, as long as the price stays below the 34 ema.

That means sometimes you are in cash, Nocona. Can you deal with that???

My reply to him was that, that method is great, but you can also get a good short off if the price is stretched away above the 34 ema, at least 20 or so ticks, because you can get a move down to the 34 ema. The price tends to want to revert to the the 34 ema, and it will test it. A really excellent trader at woodies club used to trade that way. His handle was gb007. He would never take a short with the price sitting close above the 34 ema, and I learned that from him. (Opposite for going long with price very close below the 34 ema.)

How many times have I posted for you guys when NERS was on a short signal, that "the price just won't break the 34 ema." If that happens when NERS is short, the price comes down near to the 34 ema and seems to hold it as support, it is best to take profits there. And never enter a new short when the price is sitting right on top of the 34 ema. Many of those trades fail.