Moving Averages & DeMark Indicators

 

Hi Dave,

Can you talk about how you use moving averages for trade analysis? If there is an uptrend in the 21-DMA is that enough or do you also want a longer avg such as 200-DMA to be heading up? Also, do you use the 200-DMA for your long term MA?

Finally, you talk about DeMark signals, where can we learn more about them?

Thanks.

Larry B. – La Quinta, CA

Larry,

Thanks for the question.

I have to say I do not use moving averages as part of my overall analysis. While I understand the attraction as they can help keep traders on the right side of the trend, they are a lagging indicator in terms of timing moves.

I am sure there are a few decent books out there on using moving averages, I am just not familiar with any that might be good. Let’s face it, most trading books are rubbish.

What I do use in terms of analysis consists of all or a blend of the following.

  • Elliott Wave Analysis
  • Fibonacci Analysis
  • Fundamental Analysis
  • Quantitative Analysis
  • DeMark Indicators – primarily TD Sequential
  • And I read lots of research reports…many of which are highlighted in The List

To answer your question on DeMark, a recent blog post I put together has a great summary of using the DeMark TD Sequential Indicator – you can check it out here (scroll to the bottom)

And by the way for those of you who either do or are looking to start Elliott Wave analysis – you need to look at MotiveWave Charting – it makes labeling your charts so easy.

Hope that helps.

Have a question for me? Just ask.

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