Magic,
i am inclined to agree in that moving average can be used as dynamic s&r. re your 60 wma, i would also use it as the spine theory of mma method, ie the shape of curve and the direction. curve up, curve down, straight, etc. when flat, it may well be the time of compression.
the distance between price and 60 wma is the fan-out of the mma method.
the green circled area in your chart is the area of caution for a possible reversal. if aggressive, you can short around the top of the fan-out, but you could fail if the ground force is still bull and strong.
lot of skills would be required to read the market with one mma, though, as ben has mentioned.
my suggestion now, is for you to demo trade your method and post the charts with the entry/exit marks of oanda. in that way we can see how it will work in actual scene.
just my 2 pips
i am inclined to agree in that moving average can be used as dynamic s&r. re your 60 wma, i would also use it as the spine theory of mma method, ie the shape of curve and the direction. curve up, curve down, straight, etc. when flat, it may well be the time of compression.
the distance between price and 60 wma is the fan-out of the mma method.
the green circled area in your chart is the area of caution for a possible reversal. if aggressive, you can short around the top of the fan-out, but you could fail if the ground force is still bull and strong.
lot of skills would be required to read the market with one mma, though, as ben has mentioned.
my suggestion now, is for you to demo trade your method and post the charts with the entry/exit marks of oanda. in that way we can see how it will work in actual scene.
just my 2 pips
