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Strategies & Market Trends : The Thread

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To: DebtBomb who wrote (54)5/20/2000 11:37:00 AM
From: stan s.  Read Replies (2) of 49816
 
Hi/LO differential. One of the safest and easiest ways to play the NASDAQ and techs is by means of this indicator in combination with a 20 day weighted moving average.

When the differential dips below the white line (weighted moving average), one exits the market. When it crosses above, you return.

This would have kept one out of the market (NAZ) crash in summer/fall of '98 but back in for the recovery...as you can see a total of 8 buys/sells in two years. Nary an important move missed. View it in relation to a 500 day, regular NASDAQ chart.

And of course it would have signaled one to exit in late March to avoid this recent crash.

I guess I oughta try and remember to post it again when it signals buy...<g>

geocities.com

By the way...does not work well with the NYSE. This is not the same as the advance/decline line...
That indicator on the NAZ is only relevant for short movements and has not been an overall accurate precursor on Naz moves for years.

Stan
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