Moving Averages & DeMark Indicators
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?
Larry B. – La Quinta, CA
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.