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Strategies & Market Trends : Rolling Averages, Their ins and outs and ups and downs

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To: Drygulch Dan who wrote (6)12/28/1999 1:33:00 PM
From: nasdaqian  Read Replies (1) of 31
 
If the 35, 50, 85 moving averages on this particular stock had seemed to be converging about 2 months ago after establishing a position about 7 months ago how would you react in case the stock had continued to fall apart? Or does fundamental knowledge about a particular stock make you more sanguine about this sort of technical event? I, for instance, might put in a sell stop not too far below the longer term MA. And perhaps increase my position when a rounding of the averages starts to indicate a consolidation.

Although, again, MAs would probably react too slowly to be a sole indicator, whereas MACD or Stochy might have shown a divergence earlier than the actual round up of even the shortest MA.
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