May 30, 2011

BounceUp BounceDown CrossOvers - a Trend locator

When the short term EMAs or SMAs touch longerterm EMAs or SMAs, from above and move up, the Positivity of the trend will continue to remain positive.

When the short term Moving Averages CrossOver Downwards across the longterm Moving averages, the positivity comes to a hold and the trend reverses.

When the short term Moving averages touch longerterm Moving averages from below and move down, the Negativity of the trend will continue to remain negative.

When the short term Moving averages CrossOver Upwards across the longterm Moving averages, the negativity of the trend comes to halt, and the trend reverses.

When trend is lost and market moves sideways, the crossovers keep repeating in criss cross,
then the within channel trading method will be useful.


When trending, the BounceUp or BounceDown, will be in vogue, making a trading position suitable for breakouts, pivotals, swings.

The BounceUp / BounceDown can be usable to locate trend and loss or trend, and the reversals.

At the Bouncing Point an Addition to Position can be considered. Adding to Longs while BounceUps, and adding to Shorts while BounceDowns.


1 comment:

bala said...

Thanks.
Useful posts.