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Welcome to My Trading Room, Volume III by Jacques Magliolo

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CHAPTER 11

Combining Triggers

If stock market experts were so expert, they would be buying stock, not selling advice.

—Norman Augustine (1935–Present)U.S. aerospace businessman

Merging Moving Averages

Should You Trade or Invest?

Experts can take the simplest ratio, indicator, or trigger and complicate it to the extreme. For instance, they often use moving averages as support and resistance indicators. In this instance, you ignore traditional support and resistance lines and use signals based on specific moving averages.

The trick is to combine exponential with simple moving averages to get a moving average trigger.

A brief overview: simple versus exponential moving averages.

Moving average

Explanation

Simple

•  Basic lines based on a ...

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