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Re: ??? post# 54129

Friday, 03/05/2010 8:58:49 PM

Friday, March 05, 2010 8:58:49 PM

Post# of 72997
The cross kind of loses effectiveness when the index is trading above both averages. They now both act as a support, or buying opportunity for bounce.

As you can see from the chart the MAs have been acting as support and resistance (although only a few times) this whole run up.

You can see this more often with lower time framed charts (I see it alot in FX, not those numbered MAs but it's same thing). It's almost a "fake" drawing in those traders who enter based on the anticipated cross, then they get squeezed.

This is all my opinion.

To be successful in the trading game, find a sound strategy and then learn and understand the rules of your strategy.

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