Subject: Re: Trends and Ranks 22-Nov-2024
A review of TA methods applied to my Trends and Ranks.
SMAs are often used to determine trend direction. If the SMA is moving up, the trend is up. If the SMA is moving down, the trend is down. A 200-bar SMA is common proxy for the long term trend. 50-bar SMAs are typically used to gauge the intermediate trend. Shorter period SMAs can be used to determine shorter term trends.
If the SMA is moving up, the trend is up. If the SMA is moving down, the trend is down.
A 200-bar SMA is common proxy for the long term trend.
50-bar SMAs are typically used to gauge the intermediate trend.
Shorter period SMAs can be used to determine shorter term trends.
SMAs are commonly used to smooth price data and technical indicators. The longer the period of the SMA, the smoother the result, but the more lag that is introduced between the SMA and the source.
MAC: Price crossing SMA is often used to trigger trading signals.
"BUYIF" Price > SMA
"SELLIF" Price < SMA
DMAC: SMA Crossing SMA is another common trading signal.
Long-term
"BUYIF" 50-DMA > 200-DMA
"SELLIF" 50-DMA < 200-DMA
TMAC: Two SMA's Crossing a third SMA is another common trading signal.
Intermediate
"BUYIF" 20-DMA > 45-DMA and 45-DMA > 90-DMA
"SELLIF" 20-DMA < 18-DMA and 18-DMA < 90-DMA
Short-term
"BUYIF" 4-DMA > 9-DMA and 9-DMA > 18-DMA
"SELLIF" 4-DMA < 9-DMA and 9-DMA < 18-DMA
GD_