Ever watch price “magnetize” to a line, kiss it by a cent, then rip? That rhythm isn’t magic—it’s mechanics. A large share of systematic strategies anchor entries, exits, and hedges to Simple Moving Averages (SMAs). The result is repeatable behavior: liquidity clusters near well-known averages, reactive algos rebalance around them, and human traders see “support/resistance” where machines simply see rules.
Below is a re-framed tour of popular SMA playbooks—from the classic triplets to eccentric number sets. You’ll meet them most clearly on ultra-fast baselines like a TQQQ 15-second chart, but their logic scales. Use this as a map, not a mandate.
Core Playbooks
- 1) The Spine — 10 / 50 / 200
The canonical stack. The 10 tracks impulse, the 50 captures swing state, and the 200 marks regime. Crossovers and retests define much of the backbone logic in trend models. - 2) The Balancer — 20 / 100 / 250
A slightly slower lens. The 20 smooths noise, while the 100 and 250 gate “bigger picture” bias and risk toggles over extended windows. - 3) The Sprint Grid — 30 / 60 / 90 / 300 / 600 / 900
Staggered short-to-intermediate horizons that accent inflection scouting. Great for fast sentiment shifts and “first pullback” continuation logic. - 4) The Harmonics — 33 / 66 / 99 / 333 / 666 / 999
Numerically cute, yes—but the thirds structure creates clean proportions for pyramiding and partials. Some quant desks keep a variant of this for confluence checks. - 5) The Streak Set — 11 / 44 / 88 / 111 / 444 / 888
A pattern hunter’s delight. The repeating digits aren’t mystical; they’re memorable and often paired with size rules for consistent execution. - 6) The Double-Down — 22 / 55 / 77 / 222 / 555 / 777
Doubling and near-doubling supports “confirmation on confirmation”—i.e., you don’t act until two adjacent rails agree. Slower, but cleaner. - 7) “Waring’s” Stack — 19 / 37 / 73 / 143 / 279 / 548
Quirky spacing, surprisingly useful. The irregular gaps reduce crowding at obvious levels and can reveal turns missed by rounder sets. - 8) The “Tesla” Ladder — 27 / 53 / 105 / 210 / 420 / 840
A tongue-in-cheek name for a doubling-ish ladder with recognizable milestones. Think momentum tracking with deliberate breadth between rungs.
Signature Stacks
NVDA Cascade — 16 / 32 / 64 / 128 / 256 / 512
Powers of two make a razor-clean cascade. On volatile leaders, this creates crisp “step-down” and “step-up” behavior: tag a rail, rotate risk, continue.
Day-Coded Set — 29 / 57 / 114 / 227 / 455 / 911
A commemorative, date-coded ladder some traders reference on September 11. Whether you treat it as ritual or research, the spacing can still scaffold disciplined levels.
Execution Notes That Actually Matter
- Precision ≠ perfection. Many systems place limits at the SMA or exactly one penny below. That tiny offset often avoids frontrunning jams and improves queue priority.
- Confluence > single signal. The best reactions cluster where multiple rails overlap (e.g., 50-SMA intraday aligning with a higher-TF 200-SMA).
- Microstructure tells the tale. Watch how the book refills near an SMA. Repeated absorption with failing follow-through? Fade. Clean sweep with expansion? Ride.
- Don’t worship numbers. The set is a scaffold, not a prophecy. Your edge is the behavior around the level—impulse, rotation, and participation.
Why These Numbers Keep “Working”
They’re popular—so they attract flow. Popularity concentrates resting orders, triggers, and alerts at the same coordinates. That self-reference creates reliability. Also, many stacks are harmonically related (doublings, thirds, powers of two), which simplifies model design and risk rules. In short: the market often behaves like a metronome set by the averages traders agree to watch.
Bottom line: These SMA playbooks aren’t folklore; they’re the gears of a very practical machine. Use them as alignment tools, price your risk at the rail, and let behavior—not hope—confirm the trade.
Disclaimer: Educational content only. Not financial advice. Markets carry risk; manage size and always test your rules.