Last night I was watching a clip on youtube about moving averages and this one trader was explaining how it doesn't really matter what moving average you use, they're all the same.
Here are two charts demonstrating this. One chart has a moving average of 50 SMA and the other 77 SMA (mind you... no one uses 77 but does it make a difference?). The point I'm trying to make is... you could pretty much use any moving average and price will eventually come back to it and bounce around. Does this really teach you how price moves? Maybe relative to the moving average it might but you definitely don't learn why certain areas tend to be more active than others (referring to round numbers and the big orders which may lie in that area). Nor do you learn that the market never goes straight up or down, it moves in waves.
Some will probably ask me why am I going through these exercises if I'm suppose to be learning Jacko's method? The main reason is because I want to develop a feel for the market and the only way to do that is to scrap EVERYTHING off my charts. Start fresh and learn the market. Once I know how things move, I will know what tools to use in certain market conditions and also when to start looking for a trade.
Speaking of which... there shouldn't be any euro long trades since the waves being formed are clearly collapsing and still continue to collapse. When they start rising again and break waves to the upside, that's when I'll start to hunt for opportunities.
Here are two charts demonstrating this. One chart has a moving average of 50 SMA and the other 77 SMA (mind you... no one uses 77 but does it make a difference?). The point I'm trying to make is... you could pretty much use any moving average and price will eventually come back to it and bounce around. Does this really teach you how price moves? Maybe relative to the moving average it might but you definitely don't learn why certain areas tend to be more active than others (referring to round numbers and the big orders which may lie in that area). Nor do you learn that the market never goes straight up or down, it moves in waves.
Some will probably ask me why am I going through these exercises if I'm suppose to be learning Jacko's method? The main reason is because I want to develop a feel for the market and the only way to do that is to scrap EVERYTHING off my charts. Start fresh and learn the market. Once I know how things move, I will know what tools to use in certain market conditions and also when to start looking for a trade.
Speaking of which... there shouldn't be any euro long trades since the waves being formed are clearly collapsing and still continue to collapse. When they start rising again and break waves to the upside, that's when I'll start to hunt for opportunities.