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Non-Tech : Quote.com QCharts

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To: ahhaha who wrote (13504)4/14/2001 10:38:10 AM
From: fut_trade   of 17977
 
...I challenged one of the big proponents of stochastics

There are trends in the markets at certain times, which can be used to generate $$$.

For example: The 3-day exponential moving average has been a money generating system for the S&P 500 and DJ Industrials throughout most of the history of those indices.

Using daily data, one would buy at the end of the day if the price closes above the 3-day EMA and sell if the price closes below the 3-day EMA. This system blows away a buy and hold system over the last 70 years, although there have been years in which this system has performed poorly. For example, during the early 90s and during a few years in the 80s.
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