Every month I get a copy of Futures Magazine, they normally give out free subscriptions at most Trader Expos. Anyway, one month I noticed a chart in it using the 89 Simple Moving Average as a Trend Indicator. It’s a Fibonacci number and something a little different from the 50/100/200 that most use. Since then I have added about 10 Fibonacci SMA’s to my chart analysis but I have found that by watching the SPX minute chart every day that the 89 MA seems to always become the key support/resistance of daily movement.
When it breaks clean support it normally drops pretty fast. The other Fibonacci MA’s also act as support/resistance and normally the movement between the two create the wedges and patterns that so many t/a’s love to focus on. But, out of all of them the 89 MA seems to be the strongest when it is watched for the trend.
What is your favorite?
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Nice. Thanks for the explanation. I use the 50 and 200 as general MAs, but I also use the 5-day MA for intraday entries/exits.
Here is a great example of the use of the 89MA, right now pull up the SPX 1 minute chart/3 hours…it’12est, see the SPX fell under the 89MA and now it is testing the support….watch what happens, will be interesting…whole key if Fly’s Melt Up will succeed
First the King of the PG and recently the swearing
Never would have thought that from the Nymph 2 years ago
Good stuff TN, will play with it. Enjoy having you here as my Queen.
TA, Ragin and Kenai…Thank You Ragin, lol, it’s nice to be Ms June. Kenai thank you for your levels, I am always curious what other people use…………………………oh TA……., it is one incredible journey….for Jim C,not sure what to do with him. I left his real money blog when he answered my question on what he learned from the 07,08 crashes….since last summer 09 I had been blogging over and over again that he NEEDS to watch Copper,F/X and China, he missed those in 07 and 08…..he gave same lame question on Micro investing and I realized he wasn’t catching it, I sort of stormed off saying I wouldn’t be back until he paid attention to Macro w/Micro in his blog…..Rev LOVED it of course, lol, saying what took me so long….heck my post was reposted on his blog w/in like minutes….oh well, it’s fun playing here at Fly’s, I get a crown, lol and I get to play with Fly’s PPT algo method….
Well done
How is 89 a fibonacci number?
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55 plus 34.
DMAs are solid and get rid of the majority of whipsaws.
DMA = Displaced Moving Average.
25×5, 7×5, and 3×3
Very good point