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


To: steven d. zapf who wrote (9607)2/26/1999 3:50:00 PM
From: Richard Estes  Read Replies (1) | Respond to of 12039
 
The amount you might lose is decreased with a rising MA coming up to meet price. The bounce is a last minute effort to keep trend in place. The best MA would track right behind the price in a trend then level off just under the ranging or basing actions.

if your chosen MA was too slow to follow, you would lose profit before the cross. If it was too fast, you would lose profits to whipsaws and increased trades.

you can choose type and periods for MA. Picking ones that suit your style.