A.I.M. Users Bulletin Board

[Conrad]

MACRO-AIM Action Points.

When Don Carlson first published his MA cross-over Filter there was just one moving average to consider rather than two. I do not remember hat Don changed this to two MA's. The idea behind it is of course quite logical and is a formalized means of a Trade Delay procedure. A

What is the principal rationality of using two MA's?

Suppose I am a "trigger happy" investor. I would tend to a short MA, say 10 days or so. What would be the added value to also use a long MA of say 90 days?

I would argue that of one is trading frequently and run with the short term volatility the long MA would be meaningless. . the other way also. . .someone that likes to use a 300 day MA is more like B&H investor and would not care about a short MA

So, for an investor that fits in between these extremes would a single MA of say 150 days not be most effective?

For example if the price drops and the 5 day MA crosses the price line it is time to sell and then the Long MA is still far lower. .it means nothing to me.

On the down side if there is a recovery the 5 day MA crosses the price line rather quickly: time to buy and the long MA means nothing either.