Replies to post #138521 on Simple's Green Room

[quanticopious15]

Nice to see you posting SG. I've slapped your ema lines on my 5 minute chart and I can see price either bounce of any one of the three lines or completely ignore one line and get stopped by the next ema line, or punch quickly through all three ema lines, sometimes even slicing one way through all three lines only to quickly reverse and slice back through all three other lines the opposite direction. I'm guessing that the same lines on the higher time frames would show the same thing. Like trend lines and fib levels and patterns, the ema lines offer up just one more thing to watch for and be mislead by on the lower time frames, or traded from to offer accurate and timely entries and exits. I see price action bounce off the 169 average for days, then break through to the next ema line or crash through all three and move opposite direction for days again as it bounces anew off the 169 ema but the opposite direction. But how to know how price will act in relation to those ema lines? One thing is certain though and that is how price action respects those lines.

[javalin]

tks Simple i'll bring up a chart like yours before the start-i myself have always had the injun in me lol-love to scalp

[javalin]

Simple what are your settings on the zigzag

[pennies2007]

That's some interesting selection on MA's, Simple. Longer term MA's like those may very well help dictate trend shift as opposed to some of the faster MA's I've seen used before.

I have used the 5 minute chart in the past successfully to detect larger trend shifts and I've seen them followed for a very long time using the lower time frames as guides.

I've shifted primarily to larger time frames and shifted my "slack" expectations accordingly a long time ago so I can build positions ahead of major trend shifts without getting in trouble on the account. I think what's happened with some folks is that they're getting in far too deep and/or adding too close together on the larger time frames expecting shifts that may not come for extended periods of time.

Consolidation is definitely a key component in any potential shift in trend and should be watched closely since, as you say, consolidation can simply be a pause in trend before continuation or a genuine pause before a shift in trend. The market seems to delight in taking a good long time to shift trends as they always have.

Excellent post Simple and some great suggestions and guidelines to use in determining price action and to help whittle down drawdown on entries.

[quanticopious15]

SG.........many thanks for your post here on the ema lines you use. I just added the 21 ema on the A/U monthly chart to your ema lines and noticed that once support was broken back in April of 2013, price has stopped at, and reversed, every time at the 21 ema line, and with only 180 to 200 pips to that monthly 21 ema from here on A/U I'm guessing that price will stop at, before or slightly above it once again and reverse enough to give us shorts some breathing room to get good on our positions. Starting back in April of 2014, there were 5 months where price actually kept testing that 21ema line before breaking down the beginning of Sept 2014 so we may have some weeks of trend trade opportunity before A/U breaks to the upside or makes yet another leg down on the monthly chart. That may offer up plenty of 5 minute trading from your ema lines. Just my thoughts, and I may prove wrong, but I'm definitely appreciative of your bringing back those specific ema lines into consideration for us all.