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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Rick Faurot who wrote (505)	6/11/1999 8:12:00 PM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Rick, MA crossovers always have the same problem: they work well in trending markets but give false signals in ranges (choppy markets). Many analysts try to compensate for this limitation by using different filtering methods. I think the best systems view crossovers in context with general pattern reading, so that certain signals can be visually discounted. I use only 2 MAs to watch the DJ-30 5-min, a 6 bar and 18 bar. That really helps me to visualize strength and weakness, as well as time when the index might breakout or rollover. It helps in trading components like HWP, GE or IBM. Mark Seleznov, who writes Market Call is also an avid pattern reader but, as Thomas notes, uses MA crossovers a lot for his educational series. It's that context thing again, about indicators supporting the pattern rather than the other way around. Alan