There are 2 types of levels: static and dynamic. Static levels are obvious and not difficult to find, they are very visual: Highs and lows of - days, weeks, brackets and months. Dynamic levels in my view (or system, doesn't matter, system and view in this thread are interchangeable) are moving averages. Any: simple, exponential, etc.
As I prefer simplification, I use only simple moving averages.
208 SMA - Very strong level. Pay attention how many times price is rejected by this level, and it is often turning point for price move.
52 SMA - less important level, but I don't ignore it because of the same reasons for 208 SMA.
And one more moving average I employ in my trading is - 13 Sma.
I call this combination Fan of Moving Averages. (looks like alligator of bill williams?). There is reason for using this combination of moving averages certainly. But I am not fan of viewing this as a science and don't want to be too exacting. Periods of moving averages can be any in case they serve you as an indication of direction on higher timeframes.
I'm done with my trading for today. Will watch only until settlement.
As it is known to most of us that pscyhology is 50 percent of trading, I remembered a saying by one of popular traders, don't remember who was that right now.
"The worst days in trading come after the best ones, so try to make those days less worse".
That's my trading motto for tomorrow.
Last edited by AAlekperov; April 9th, 2012 at 10:41 PM.
The following user says Thank You to AAlekperov for this post:
Well i use it for Confirmation, and if i do enter the Market on another Indicators Signal other than PSAR and it does not soon appear to Confirm i will look to tighten my Stop.
Also i do use it for Trailing my Stop and it also helps me to stay in a move.
You can see how i have my Charts set up as i use more than one size of the Renko bar chart, but with the same Indicators.