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It seems that you had some losing trades while using the MAs as indicators. However, you need to keep in mind some important points: You should use simple moving averages along side other indicators and not alone. For example, you can use the 200 MA along side the RSI to identify an oversold condition. Different indicators are useful during different ...


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A moving average (MA) reduces the amount of noise in a price chart. The longer the period, the greater the smoothing and the fewer the number of whipsaws. The drawback of a longer period is that the signals are delayed so that you are late in and late out. Use a shorter period and you'll be more timely but you'll have a lot of bad trades from whipsaws. A ...


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It has been 4-some years, and I have to add an answer myself. BATS (http://markets.cboe.com/us/equities/) is a nice place to view delays partial Level-II data: However, I would highly recommend (for U.S. based customers at least) to signup for free for TDAmeritrade. They have no minimum deposit requirements. Signup is quick and easy. And they give you ...


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Nomenclature for stock symbols isn't standardized. Brokers and web sites use a variety of suffixes for non standard symbols. This is particularly maddening for preferred stocks. Fortunately, securities have CUSIP numbers so that other than infrequent human error, ACAT transfers operate efficiently. To demonstrate the insanity of web site nomenclature for ...


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Open interest represents the number of contracts that exist on any given day. In order for a trade to occur, there must be a buyer and a seller. Each may be opening or closing the contract. There are 4 scenarios: BTO and STO Both parties are initiating a new position (one new buyer and one new seller) so open interest increases by one BTO and STC ...


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Receiving 5% on one US Government Bond and paying 2.5% on another US Government Bond with the same maturity is an obvious winner, but many hedge funds went bust in 2008 because they were unable to hold their trades to fruition. I don't know this market so I can't explain what happened to this trade back then. But having done many, many equity pairs trade ...


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When the bust came in 2008, hedge funds were force to settle out liquid positions (such as treasury bonds) in order to raise cash in order to meet margin calls on their illiquid positions. These hedge funds would have been sitting on large positions in collaterallized debt obligations (specifically mortgage backed securities) for which there was suddenly no ...


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I think that what you are referring to is Post-Earnings Announcement Drift (PEAD) which is movement in the direction of the earnings announcement after the release. IOW, when a company reports better than expected earnings, share price will drift upward for a few weeks afterward and downward after poor earnings.


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