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All About Day Trading by Jake Bernstein

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CHAPTER 6The MA Channel Method of Day Trading

The moving average channel (MAC) is a method I developed in the late 1970s. It was highly useful and effective then and is even better now. It is a very simple method to understand and just as simple to use.

THE METHOD

The MAC is based on two simple moving averages (MAs). As opposed to the use of traditional moving average crossover systems, which use the moving average of closing prices, the MAC uses two MAs, one MA of the high price and one MA of the low price. In testing the historical performance of traditional closing MA systems, the typical results with such crossovers systems are very poor, usually in the range of 30 to 45 percent accuracy. The MAC improves the odds considerably because it ...

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