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TA Question - EMA Days?

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DCTrader
Super Contributor
Ok, so I know TA has been discussed at length on the forum. But one aspect I can't decide on is the EMA days that are most useful. It effects graphs such as the MACD and a few others. I know it's different strokes for different folks, Ie. long term vs. short term investors. I generally prefer to trade shorter term but also look for long term entry positions. The MACD is pretty useless when 200/50 day EMA is used. What do you guys generally use when using EMA's... 21/9 or longer periods and why?
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7 REPLIES 7
Not applicable
I use the 20 and 50 day averages ,but as points of support and resistance.The 20 day shows short term support/resistance and the 50 day medium term.Also watch the 200 day average for long term support/resistance.I sometimes also use the 5 and 10 day cross over to enter trades.
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8 and 21 are generally what swing traders look for.....a favourite low risk entry of mine is on the pullback to the 21 day after a crossover has occurred....(provided the pullback is on relatively low volume)....my advice is to leave the indicators alone ...despite what the experts say they are all lagging indicators ....they can be useful but learning to have a total irreverence for indicators has been a total epiphany....they sure do keep the vendors of TA courses and TA analysts in business....
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Wumpus
Frequent Contributor
Good point Chartist. I alway wonder why these "experts" that phone me to tell how the can teach me to double my money in record time do not trade themselves? I mean really, why try to run a TA teaching business when you can double your own money in record time... It's a complete paradox and absolutely ridiculous. :-) I find TA can be pretty dangerous. My own silly system involves the TOP40 pulling back to its 200MA and making money on the upswing (with the necessary stoploss in place). That's it! The more complicated the more risky.
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Ja wumpus you may well ask the question ....just seems like a whole lot of hard work to me.....well you gotta just dig a little and you will soon find out who the people are that actually make the money, who needs to work cause they have faarked up once too often and who has been bailed out by their mother in law (twice).....you get my drift
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Russ
Super Contributor
Good advice on HAR a few days ago,Chartist. After digesting your post, as I said I would, I got out of harsbb at 40.It's now sitting at around 29. Thanks!
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AJDK
Frequent Contributor
Chartist... If you say we should leave those indicators alone, what would you recommend then? Surely you do some TA yourself? Over what timeframe would you do your analysis then? Start maybe at weekly and move closer to dayly? Maybe start at monthly?
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Russ...ja I must say I was doubtful when I took profits....everything but the charts were telling me not to...HAR is behaving itself beautifully as far as technicals go....
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