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USING THE 200 DMA AS A BUY/SELL SIGNAL

21 June 2009 by TPC 4 Comments

Great study here on using the 200 day moving average as a long-term buy and sell signal. The conclusion will surprise you.

Moving_Average-Holy_Grail_or_Fairy_Tale-Part_1 –

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4 Comments »

Onlooker said:

Why is it surprising? And we don’t even have his final conclusion yet.

Just wondering what your perspective is and why your statement about it being surprising.

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# 21 June 2009 at 8:35 AM

Newbie said:

Page 2, paragraph 2, line 1 ff: “You buy when the price moves above its moving average, and sell when drops below.” Excuse, please, but shouldn’t it be the other way around?

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# 21 June 2009 at 8:12 PM

Newbie said:

> Page 2, paragraph 2, line 1 ff: “You buy when the price moves above its moving average, and sell when drops below.” > Excuse, please, but shouldn’t it be the other way around?

Never mind, I think I’ve figured it out….

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# 21 June 2009 at 8:59 PM

JTodd said:

This is a very interesting paper but the author fails to define his buy/sell signals clearly.

“You buy when the price moves above its moving average, and sell when drops below.”

But is this intraday? Daily close? Monthly close?

Most descriptions of this type of method that I have read require a monthly close above/below the moving average in question. So I assume this is what he is describing but any other perspectives would be good to hear.