For Trending Markets, the Weekly Crosses of the 13/34 week EMA have been remarkably accurate in calling LT Market Turns especially when a Trendline (thin black lines) coincide with the cross. I do not think that the current uptrend line has been established yet, the low on this correction will set the second point.
According to the Chart shown, we are still in a Bull Market ....I wonder how many Mutual Funds underperformed this simplistic approach?
Now it doesn't work for non trending markets like the SOX but I checked about 20 major World Indexes and subindexes and only 2 gave one or two whipsaws
but for simplicity, its a nice check of where we are at.
http://stockcharts.com/c-sc/sc?s=$SPX&p=W&yr=10&mn=6&dy=0&i=p07228969603&a=100269501&r=2538.png
Weekly 13/34 EMA Good Guide for Trend
Started by
Woody
, Mar 07 2007 10:07 AM
2 replies to this topic
#1
Posted 07 March 2007 - 10:07 AM
#2
Posted 07 March 2007 - 10:47 AM
13/34 EMA work well in any timeframe.
Just use trendlines, triangles and you have a nice trading system
MACD Divergences also... in order to anticipate a reversal (one of the best..... if not the best momentum indicator)
#3
Posted 07 March 2007 - 11:05 AM
Yes it is as simple as this:)
It is not the doing that is difficult, but the knowing
It's the illiquidity, stupid !
It's the illiquidity, stupid !