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To: Cynic 2005 who wrote (7272)9/30/1998 1:22:00 PM
From: Joseph G.  Respond to of 86076
 
<< What does it mean when 200 DMA trips over 50 DMA - both with a downward slope?>>

There is a very simple DMA based mechanical trading system that works, in the long run, that says "buy" if 200DMA is crossed up, and sell if 200DMA is crossed down. Now, people play around, and to limit whipsaw use, for example, a short period (like 20 or 50 DMA) for crossing, does not make difference. In a "trading range" market, like in 1965 - 82, if slope of 200DMA is in the direction of price change, it confirms the message.

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