Home » Most Recent Stories, Strategy Lab

USING THE 200 DMA AS A BUY/SELL SIGNAL

21 June 2009 by Cullen Roche 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 –

Cullen Roche

Cullen Roche

Bio - Coming Soon.

More Posts - Website

Follow Me:
TwitterYouTube

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
  • Onlooker

    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.

    06/21/2009 at 8:35 AM
  • Newbie

    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?

    06/21/2009 at 8:12 PM
  • Newbie

    > 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….

    06/21/2009 at 8:59 PM
  • JTodd

    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.

    06/22/2009 at 1:02 PM