Oscillators also give an insight into the cyclical nature of markets. Being obsessed with market structure and somewhat compulsive in my quest for efficiency my ways are not 'comfortable' for many. So to get back to basics for those not able or willing to devote the time to market study that I do here is a way to handle your market study and trading decisions. I will show you how. Intermediate trends lasting many months, even a couple of years or so.
Short term trends lasting weeks or months.
Trade intermediate trends in either direction. Trade short term trends only in the direction of the intermediate trend. The Basics of MAs MAs lag market reversals at tops and bottoms, the larger the MA the longer the lag period, the shorter the MA the shorter the lag but the more frequent the whipsaws. MAs work well when markets trend but get frequently whipsawed when they are in a range. Therefore, trade trends with the MAs but do not trade ranges using MAs.