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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?


To: IVAN1 who wrote (10913)6/1/2000 10:25:00 PM
From: Richard Estes  Respond to of 12039
 
The close is the usual trigger. I use the mid price (ohlc)/4. Some set a % such as close plus 1%. Some want to see two bars close above MA. Remember the evelope is small, you need to commit in at least three bars.

If you spend time testing an MA, so you learn to trust it. You act on the cross you chose each time, in and out. Any system only works if you follow it. You learn to trust and follow it by looking at the past under all conditions.

An MA system says for example, you think that when price moves above a 13 bar ma, that shows sufficent interest and buying to reflect an upward trend. When stock is selling below a 13 bar ma, it is in a downward trend. Something changed each time of a cross. You have decided after looking/testing that this has shown many times in the past to call moves you want to take part in. It is your choice and decision because it is your money.



To: IVAN1 who wrote (10913)7/13/2000 2:34:34 PM
From: David R. Evans  Read Replies (2) | Respond to of 12039
 
Hello Ivan1,

Why not put TWO (2) MA's on the chart and wait for them to cross?????? Example, put a 5 EMA and a 13 EMA and look at all the places the 5 EMA crossed UP THROUGH the 13 EMA...

I like to use three(3), 5,13,40.... Put the 5 EMA in red, 13 in Blue and the 40 in Green.. Now look at the chart and look for all the points where you had ALL THREE crossing around the same time......

Interesting????

ps... EMA stands for Exponential Moving Average...

Dave Evans