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To: tekgk who wrote (7034)	11/6/1997 7:39:00 AM
From: Arik T.G.	Read Replies (1) of 18056

tekgk, <<Right now the only trend is whipsaws>> I disagree. To look at smooth trends and eliminate noise use MA on the SPX chart. I use 5 and 21 exponential DMA (a week and a month, and also Fibbonaci [sp] #s). Use them here: alphachart.com Type SPX at ticker and press enter, then you can play with the chart. Using the cross between the 5 and the 21 MA as a buy or sell signal, buy for 5 ema crossing the 21 ema up, you can see a trend is easily established. Long position opened at the buy signal end of April needn't be closed until the sell signal on Aug 10th, 150 SPX points higher. That was a very clear up trend. No trend is when the 5 ema is crossing the 21 ema back and forth (end of Aug.- mid Sep.). Sell signal was given a day before the 555 points drop, and is still on. You can use 8 and 21 or 8 and 34 to get even a smoother pattern, but the buy and sell signals could be too late. Using 3-13 is good for short term trading and is prone to noise. My experience tells me that the 5-21 is optimal for eliminating noise and still getting the signals on time. ATG

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