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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Carolyn S. who wrote (1146)	11/8/1998 9:57:00 PM
From: Jim Battaglia	Respond to of 4916

I think he means "Moving Averages".

To: Carolyn S. who wrote (1146)	11/8/1998 10:31:00 PM
From: Julius Wong	Read Replies (1) \| Respond to of 4916

Carolyn: "MA" moving averages. One of the more interesting study for sector fund is a program of moving averages and a band (or filter), MA +- (b% of MA). There are two parameters: t and b, where t is the period of MA, and b is the half-band size. There are two lines: upper line MA(1+b%), lower line MA(1-b%). The purpose of the band is to reduce whipsaw. Cross over the upper line from below is a buy signal. Cross over the lower line from above is a sell signal. When the MA is EMA, t=31, and b=0.75, we have the famous ELVE, discovered by Don Bell. It is probably the best formula for FSVLX. A good setting for some other funds: t < 31, and b > 0.75. This is a flexible program. If we use a very large b, the formula approaches to buy and hold. Julius