Thursday, April 9, 2009

Try this neat trick

I learned this about three weeks ago from a very successful trader...and it seems to work a lot. This is an excellent method for swing trades (that you identify with Fibonacci points) and on uptrends like in the chart below.

(Present time trade updates 8:01 p.m.)

I always use the standard 10, 21, 55, 100 or 200 MA's...but for some reason, implementing the 34 EMA is a really good short term moving average. Here is the chart of the US/YEN as I write. See all the bounces off of the 34? (clicking on the chart gives you a clearer view):



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