O'Reilly logo

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits by Michael C. Thomsett

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Price Crossover

The value of MA is that it establishes a recognizable trading range over time. This range—the current trend—is not only easily identified, but once price evolves above or below, it creates a specific signal moving away from the established trend.

A bullish signal results from current price crossing above both MA lines, and a bearish signal is found when price crosses below both MA lines. The rationale makes sense for secondary and swing trades, but primary trends (price crossover) may make the beginning and end of a secondary trend as well. Thus, MA tracked over a long period is useful for determining the longevity of the trend, whereas short-term crossover can be used to spot and time shorter-term trends, notably swing trends. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required