Traders Laboratory - View Single Post - Crude Oil March 20
View Single Post
  #32 (permalink)  
Old 04-11-2008, 10:18 AM
james_gsx's Avatar
james_gsx james_gsx is offline
james_gsx has no status.

Trader Specs
 
Join Date: Jun 2007
Location: Denver, Colorado
Posts: 702
Thanks: 55
Thanked 54 Times in 32 Posts
Blog Entries: 3
Send a message via AIM to james_gsx Send a message via Skype™ to james_gsx
Re: Crude Oil March 20

It really depends on the market and how it's acting. For example last summer it was really easy to use the 8 and 21 EMA for the YM. I could simply (I stole this from John Carter) buy on pullbacks to the 8 EMA. CL you could do with pullbacks to the 8 and 21. But now they almost seem irrelevant since both the YM and CL seem to range more than trend.

The 50 and 100 EMA were plotted for the YM and ES, but since I use the same chart for all daily time frames it shows up on the CL chart as well. They work well for support and resistance levels as you can see on the ES. For the CL I guess you could say they are just there as they haven't been needed lately. Although the 50 did provide great support.

But on a normal trending market, yes I would use them. Just like any "indicator" though, they are more of a guide.

Reply With Quote