Wednesday, January 28, 2009
10 yrs. of Observation
After years of listening to others and reading everything I can about the markets, I've come up with the most simple chart, on a daily bases, to help make wise trade decisions. It will simply be referred to as RedDirtsDeadBeatChart. The blue moving average should be well known to all those that read the Wall Street Journal. The blue 65 day simple moving average shows up on their charts in every publication. The red 29 day simple moving average is something I was taught by a floor trader in Chicago. The green 5 day simple moving average is something the swing and day traders pay close attention! Now, all we have to do is watch these 3 simple moving averages along with volume and candlesticks. This should keep things very simple for those just now starting to trade.
I'm sure if you've looked at the DeadBeatChart you will notice the 29 and 65 day ma's have converged along with the closing price of a long white candle. I've added the link to this chart on the sidebar. This chart led me to exit a 3 day swing trade to the upside with only 2 minutes left till the closing bell today!
Thanks for stopping by to see what the RedDirtTrader has been up to.
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