Cycles and averages

[Mark Jurik <mark@xxxxxxxxxxxx>]

Monte:

>>... In summary, I think a 2-line ma crossover system whose best return on account comes from inverted ma lengths, does so because the ma crossover system lag is the duration of the cycle.<<

You are very close... actually the crossover lags by 1/2 the cycle length, so inverting the MACD logic puts it right back in phase with the oscillating signal. However, this approach is risky because during an uptrend, the reverse logic will suggest going short. Consequently, this approach works best on markets that spend most of the time reversing within a channel.

- mark jurik