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Improve Your Averages
In its most basic form, a moving average signals a trend change when the fast moving average crosses above or below a slower moving average.
This crossover point delivers two messages.
The first message indicates a change in direction for price; most people concentrate on this and on ways of fine-tuning the signal. The second message reveals to us a moment of agreement about value from two different time frames. We tend to ignore the second message even though is contains potentially valuable information.
The Multiple Moving Average provides us with a method of visualising the dynamics of the market and the change from stability to instability and back again. It reveals additional information about the dynamics of the market that cannot be obtained from any individual moving average.
Kevin Barry of the Traders & Investors Club will demonstrating how the MMA can identify the potential for a change of market state and help to define the time frame in which the change is likely to occur.
Comments
Thank you for this interesting approach!
Thanks Kevin. Yep I saw this on you tube and thought it was a great intro. I am still looking for more on it that addresses things like time frame, trailing stop strategy, what entry strategies mesh will with it, etc, etc. Thanks of your this presentation however!