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dam

01/08/10 1:52 PM

#124929 RE: KGB1974 #124925

Trade School. KBG1974, I'm sure you meant 4.36. Anyway, I use the 4/9/18 double-crossover for signals when I'm trying to trade a trend. In that it would've been a buy-alert on Nov 19/20 around 4, and a confirmed buy signal on Nov 30 around 4.15-4.20.

Since you're trading on trends, you should continue doing so until you get a sell-alert or a sell-confirmed.

Usually I mix crossover alerts and whatnot with support/resistance analysis and look for plays with favorable risk/reward. The closer your entry is to support, the less of a drop you need to sustain before you can stop out and not have to worry about just getting shook out and seeing the stock bounce back fast.
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ble_ak

01/08/10 2:04 PM

#124931 RE: KGB1974 #124925

The first thing to do is to not mix EMAs with MAs. Some people prefer to use EMAs and some prefer MAs, but for crossover analysis only use one kind. For instance, 20 MA crossing the 50 MA, or 20 EMA crossing the 110 EMA.

EMAs are more timely than MAs but are also more likely to get whipsawed. MAs are less timely so you'll get in the trade later than with EMAs but you are also less likely to get whipsawed and is thus a better signal.