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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 (8)12/28/1999 4:08:00 PM
From: nasdaqian  Read Replies (1) of 31
 
OK. So you are much more aggressive than I in your trading. My technique would be passive and seeks to limit losses in case a stock falls apart whereas yours seeks to try to squeeze the most out of a move.

So does that mean you would look for the gap between the fast MA to increase over the slow MA until it starts to turn over or at least looks like the run is winding down, perhaps sell some of the position there, and then buy back in presumably at a lower price as the fast MA starts to round up. It's not always that simple I realize, but is that the nut of it?

I guess where it may not work well is in a stock that gaps up, then goes almost straight sideways rather than dipping before resuming the climb again. Take ORCL from mid June to late October. What would you do during those two rises and sideways consolidations? Better to have been passive and saved the commissions and headaches, no?
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