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Steve,
Moving average cross overs work extremely well in strong trending
stocks, but will whipsaw you to death for stocks in trading ranges. The
trick is to know when to use them and when to ignore them. I'll admit that
I don't use moving average cross overs for signals anymore, but I did
experiment with a system a long time ago that worked fairly well by
ignoring cross over entries unless the adrx was above an optimized value
for the individual stock being considered. The systems I'm using now based
on RSquared and ROC work better and do have components that look at whether
the moving averages are rising or falling.
Jim
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From: Steve Burns <sburns@xxxxxxxxxxx>
To: 'metastock-list@xxxxxxxxxxxxx'
Subject: RE: Reference my 8/8/97 E-mail
Date: Thursday, September 11, 1997 8:55 AM
I have experimented with moving average crossings for the last five years.
I have concluded that using this approach chops you to pieces. Anyone care
to comment?
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