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Using Three Moving Averages

Posted By On 1/17/2008 01:29:00 AM Under
1. One has an option to use three moving averages namely 5,8 and 13 day moving averages which enables one to rule out whipsaws in any sideways market.

2. One can go long when 5 day moving average (DMA) and 8 DMA crosses 13 DMA.

3. One can exit when 5 DMA crosses back below 8 DMA.

4. To be sure one must ensure that 8 DMA and 5 DMA are on the same side of 13 DMA.

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