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Re: Toofuzzy post# 7912

Tuesday, 04/08/2003 10:18:48 PM

Tuesday, April 08, 2003 10:18:48 PM

Post# of 47153
TooFuzzy

From a long term perspective the 200 day MA selling and buying method is a sound one in theory. The big problem then becomes WHEN to buy or sell when the MA criteria is met? Looking at the problem it's quite simple to at least have a trigger to let you know when. The RSI. When the RSI is at or below 30 buy and at or above 70 sell. This is an old trick, however it's generally used as a pure buy and sell. When used with AIM or DDCA it becomes a powerful method to get the most out of these trading systems.
A small exception to the rule is if the price falls to a new low (after a previous sig) or rises to a new high but the RSI does not quite give a signal... Take action anyway! This is a classic "non-conformation" and is generally rewarded. You would do quite well using this system.

The only problem I see is that you would be a slave to charts and would have to check them every day (or nite) to see if a signal were given.

Jibes
TrendSeekers at:
http://jibes0.tripod.com/trendseeker.html

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