PriceTeam

[PriceTeam]

The Holistic MA Method of Market Analysis
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The following is the briefest sketch of the entire method put together. First, let me say, I can't believe it, but occasionally I run out of energy for writing--now that I've started this board. So I'm not going to lay everything out here. This is but an outline.
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To analyze the market, start with this one law:

A price trends up only when it is above a given moving average while the moving average is pointing up or turning up.


Examine a major index such as the $SPX with the following ma's: 10, 20, 50, 75, 100, 150, 200.

Now examine each moving average one by one (carefully and in detail) and apply the law of price. What does it tell you RIGHT NOW (not what you think might happen tomorrow) about price relative to that one moving average?

Move systematically from the 10 to the 200--or from the 200 to the 10. Watch for any arcing of the line. A down-sloping line that arcs up is sending a possible bullish signal. An up-sloping line that arcs down signals a possible bearish move.

Now integrate all that information seamlessly, and that gives you the most accurate possible reading of the market. Much can be added to this, but this method allows tracking and tracing of the market. It enables efficient, reliable buy and sell signals. It turns trading from risk-taking into wealth engineering.

This tracking and tracing can be automated with a low and manageable inaccuracy rate. All market opinion is rendered virtually useless. Worries about the Wall Street boyz are old-fashioned--out of date--especially if you combine this moving-average method with the methods outlined in the post on how to find winning trades/investments.

The human trader is also fast becoming obsolete, and if you enjoy trading, that's fine. This understanding will lead to your being a better trader.

The problem with the human brain is that it projects an imagined future with desire and fear. It is impatient. A computer can wait forever without any worry or concern.

Ted