Join The Band by Marco Alves
ARTICLE SYNOPSIS ...Join The Band by Marco Alves
Apply this method to moving average crossovers to get rid of the lag and the false signals.
One of the first indicators that any technical analysis novice studies is the moving average crossover. Moving averages (MAs) smooth a price series by determining the average closing price for a determined period (the last n bars) and, as a result, are lagging indicators, more suited to trending markets rather than rangebound ones.
If two MAs of different periods are used together, a simple trading system can be built around it easily. Every time the shorter (faster) movi...