Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders
Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro
Moving 100 Trading Tips
One of my favourite moving averages is the moving average 100. I like it so much that I made it the backbone of the TSTW 24 trading system. In this article I will share with traders effective moving average 100 tips and tricks. Let's get started.
Role Of Moving Average 100
All moving averages help to determine if a trend or strong momentum is in place. A divergence between two rising moving averages indicate a strong bullish momentum. Two diverging moving averages that are declining highlight a strong bearish momentum.
A contraction (covergence) of two or more moving averages highlights a consolidation. When two or more moving averages are converging to the same zone, they are contracting.
So moving averages do help to quantify a trend, strong momentum and consolidation.
Amongst all the moving averages, the moving average 100 is specially gifted to pinpoint the posible start of a bullish or bearish trend.
Without keeping you waiting , the ultimate role of the moving average 100 is to signal the start of a bullish and bearish trend. Since I discovered that I have stopped using the ADX indicator.
Using Moving 100
When one is using the moving average 100, one must pay attention to its slope. Is it a positive slope (rising)? Is it a negative slope (declining)? Is it a neutral slope (horizontal)?
At the start of a bullish trend, the price will always rise above the rising moving average 100. It will stay above it throughout the bullish trend. This is true on every time frame. I mean all time frames without exception.
Before the start of a bearish trend, the price always drops below the moving average 100. As the bearish momentum is growing, it exhibits lower lows and highs but stays below the declining moving average 100 throughout the bearish trend.
To help monitor the slope of the moving average 100, I have noted that it is better that one combines MA 50 to MA 100.
When the MA 50 goes above MA 100, one must give priority to bullish signals. One expects the price to continue to break resistances until it fails to display a new higher high.
On the hand when the MA 50 goes below MA 100, a bearish momentum begins. One must prioritize bearish trading signals as long as the price is exhibiting lower lows and highs.
Warning Be cautious when the MA fifty rises above MA 100 but the MA 100 is still declining. On will be more careful when MA 50 dips below MA 100, but MA 100 is still rising.
Understand More MA 100 Trading
It is always helpful to find out what has cause MA 50 to pop above or below MA 100.
Usually, a higher time frame's high probability trade setup will cause the crossover. For example a high probability bullish trade setup on 2H chart will cause MA 50 to rise above MA 100 on the 5M chart. Or it may be a daily chart's setup that causes the same thing on the hourly chart. Note that the best MA 50 and MA 100 crossovers are always caused by from a higher time frame's reliable setups.
When MA 100 is neutral (almost horizontal) after a high volatility period, it signals that a consolidation is more likely.
It is also common that most technical traders do forget to draw channels or apply the market geometry as soon as they begin to use the moving averages. I do not understand why one should ignore everything one has learnt just because one begins to use a new strategy. It is happening all the times.
Even those that has climbed the ladder of trading and investing up to the upper steps; as soon as they begin to adopt the mindset of an investor, most do quickly throw away everything that they have learnt as a technical trader. Really, that is a waste.
I have seen it also when a normal technical trader is ignoring everything he or she has learnt before as soon as he or she has mastered the Elliott wave principle. Am I talking too much?
I want to talk about it because it is really a mistake to remove the steps that one has already used when one is standing on a higher step on a ladder. One should consolidate all skills and knowledge as one using the moving averages.
One should also avoid using a robust trading strategy on the lower times frame. It is recommendable that one always uses different times frame. Please do not just waste time using the MA 100 strategy on lower times frame only. For example a TSTW 24 day trader may isolate 2H chart, daily chart or a higher time frame's setup then switch to the first best time frame.
Tricky MA 100 Trading
Like every other moving average trading, one must always map out the chart on another higher time frame before using the MA on one's preferred time frame. This time I am really addressing beginner traders. For example, one can draw all trend lines, channels and pitchfork tool on the daily chart then switch to the 5M chart to use the MA 100.
Sometimes, a trend can start above the MA100 and quickly fades out after rising very fast from the MA100 up to the first resistance level. It is important that one maps out the chart.
An Eliott trader can begin to count waves as soon as the price goes above or below the MA 100.
There are traders of different levels with different skills, but a more advanced trader will surely get the best out of the moving average hundred trading.
The moving average 100 in conjunction with MA 50 will do a better job than the ADX indicator when it comes to pinpointing the start of a trend. The best MA 50 and MA 100 crossover is always caused by a higher probability trade setup of a higher degree.
In my opinion, the MA 100 is not an ordinary moving average that one ignore. It is an indispensable trading tool. The good thing about it is that it does help on every time frame.
Thank you for reading. I hope you will find it useful. If yes, please share and bookmark it. I will really appreciate that.
I wish you the very best.
Happy Trading To All
This article is written by
founder of https://www.stochastic-macd.com website.
If you have any questions or comments, please post them at