cdance
17 posts
msg #53317
- Ignore cdance |
7/22/2007 10:58:42 AM
Has anyone used the concept of Moving Average Channels made up of averages of the highs and lows as opposed to the closing prices?
This is probably old news since I got the idea from a book by Jake Bernstein written several years ago.
The basic idea is illustrated in the following filter:
draw CMA(High,10) plot on price
draw CMA(low,8) plot on price
and price > 5
and volume > 5000000
and low 1 day ago > cma(high,10)of 1 day ago
and low 2 days ago > cma(high,10)of 2 days ago
and low 3 days ago < cma(high,10)of 3 days ago
I'd like to know if any of you have used this concept and what other indicators you've used with it?
Thanks
CD
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maxreturn
745 posts
msg #53320
- Ignore maxreturn |
7/22/2007 1:05:34 PM
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danglin
37 posts
msg #53352
- Ignore danglin |
7/23/2007 8:34:14 AM
Well. This basically shows stocks that already took off. Are you shorting these or riding the wave?
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mktmole
325 posts
msg #53354
- Ignore mktmole |
7/23/2007 10:06:30 AM
cdance: JB's work has been revised in his latest book to this:
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cdance
17 posts
msg #53433
- Ignore cdance |
7/24/2007 8:46:58 PM
Thank you Mktmole! That helps.
Has anyone used this as part of a working system?
What other indicators might be used with it?
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johnpaulca
12,036 posts
msg #54460
- Ignore johnpaulca |
8/30/2007 5:05:43 PM
I use this along with Bollinger band(40,0.4). I look for two close above the high 10ma, coming from below the BB(40,0.4). I got a buy signal today for NTRI...take a look. Hope this helps.
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