The algebra of inequalities by Donald D. Bump, Ph.D.
ARTICLE SYNOPSIS ...The algebra of inequalities by Donald D. Bump, Ph.D.
Many technical systems, simple and complex, come down to a decision based on inequality. For
example, ""If the 10-day moving average for today is greater than that of yesterday, go (or remain) long.""
The criteria for the decision can be expressed as the inequality:
If 10MA1 > 10MA2 buy (hold) long
Consider another simple system: ""If the 4-day moving average penetrates the 8-day moving average in
the upwards direction, go long."" A decision here is indicated by:
If 4MA1 > 8MA1 then buy (hold) long...