Simple's Green Room

[simplegreen]

Qui..I'm not sure if that about the angles on 100 and/or 200 is in his book but its in mine(LOL)..I have touched on that subject for years and call it angle of ascent and angle of descent.Since this book thingy came up I have been more intrigued by SMAs than EMAs for the first time in many years.What I am believing is that EMAs being weighted to last bars could easily turn horizontal for a period but then resume the trend whereas in my thinking the SMA will show more of what I want to see..that being I want to see in the moving average the exhaustion of sellers in a downtrending market and the exhaustion of buyers in an uptrending market.In FOREX we have no clue as to volume data but IMO we can spot the probable reversal area of a trend by the SMA100 turning sideways which IMO tells one of two things...the market has found equilibrium in that the amount of buyers and sellers are about equal or ..two....the market has hit a stall spot where billions of units are being unloaded at a point which has ready takers on the other side of the trade.That happens every so often often..inordinate periods of sideways action..its seen in tight bollingers.One NEVER knows if tight bolies will drop or breakout out to upside til its happened..but that another story.Usually tho tight bolies at a top see huge downward moves or outright reversals depending on time frame.
Usually tho in what I observe what happens is for example...long downtrend followed by sideways action of the 100...followed by breakout to upside that will reverse or stall at first significant MA...once across the 100(which he calls the "trigger") a nice move occurs with momentum...then if it crosses and holds the 200(which he calls "confirmation")..a very nice upward move follows.If the two MAs are well spread apart it may stall at the 200 and trade for a season BETWEEN the 100 and the 200(which he calls "trading between the goalposts")
...Simple aint it!?(LOL)