As we go along, I will add moving averages to the method illustrated above, and then I will illustrate patterns offering a range of trading opportunities:
Good
Better
Great
Outstanding
Then instead of trying to read God's mind (or Wall Street's), you can simply watch for these patterns--which show up throughout the year.
Pretending we can read the market when our stats reveal we are throwing dice is a waste of effort, cash, and opportunity.
Now here's the amazing part. When I put the whole method together and use it to read the market, I can with a high degree of accuracy. Greater accuracy than I have seen with most methods. But I'm not reading God's mind or Wall Street's mind. I'm reading the particular configuration of moving averages.
And why can't this method be manipulated easily? Because it takes time and lots of money to turn a moving average. And by the time it's turning, I already have a good clue as to what the signal means--at least right now. And the only place I can make or lose money is right now. So I want a method that tells me what to BUY, HOLD, or SELL right now.
Ted
Strip price to the barest data that tells us BUY, HOLD, or SELL.
