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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (8295)	11/11/1998 8:54:00 AM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 44573

Tom, I like using 25 days because a shorter period gives too many false signals and a longer period gives a signal a bit too late. 25 days seems to filter out much of the day to day zig zags within the move and still gets me in or out safely. It differentiates between a rally dip and rally top. I may exit for a day or two on a false sell, as I did a few weeks ago, but I'll quickly reposition for the resumption of the move. This lets me get out before any serious decline begins. Using this method, I'll never miss a major top and get caught long or major bottom and miss a good rally like the one we're witnessing currently. The divergence that I mentioned is not at all related to momentum, but an ongoing on balance calculation of the advance declines over time. GZ