hi friends
Moving averages chart patterns regular indicators do not work in current markets.
Proof?
check for yourself how many times you got kicked in your trading when you were trading with moving averages.
WHY MOVING AVERAGES DONT WORK IN CURRENT MARKETS?
An article in a popular trading magazine (Technical Analysis of Stocks and Commodities, May 2009, Pg 48, Bulkowski)
proved that popular price indicators, chart patterns and moving averages of price are 50% less effective now than they were just 10 years ago.
It was 7 years ago. imagine how much algorithm trading ,machine trading increased since then.
70% of trades have your opposite partner as machine trades.
machine trading likely kills smaller trends.
indicators based on a moving average of prices -do not work in current markets.
we need indicators that are based on the actual buying and selling and market forces based on the markets own internals - the volume and the number issues being traded at any one time - in a proprietary formula that is not 'averaged' but recorded on your screen in real-time.
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The problem
WE have with most 'price' indicators is that
they only correlate to price and not to the underlying conditions in which price is being driven higher or lower.
here is a system that works only in tradestation or thinkorswim.
just click on marketxfactor and see it in detail.
MarketXfactor
I wish somebody who is good at thinkorswim or tradestation check it and let us know how it works and how to get it working in metatrader.
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NOTE: MarketXfactor is not a trading system,
it is a proprietary indicator to determine actual buying and selling in the markets.
Markets advance when there are more buyers than sellers and decline when their are more sellers than buyers.
NOTE: MarketXfactor only works as an indicator on the major indexes and averages-
DOW, S&P500, NASDAQ and most major DOW stocks.
It is an indicator only, not a trading system. It is up to you to choose when to buy or sell a particular investment. It may not work on all stocks.
MarketXfactor tells you in a single glance:
(1) Who is in charge now (buyers or sellers) and
(2) Who is gaining or losing control of the market (buyers or sellers)
(3) and much more...