ARTICLE SYNOPSIS...Sometimes a stock's price will move so far away from its simple moving average (SMA) that the temptation is to trade in the opposite direction. The idea underlying these trades is that stock prices will always revert to their mean. Right? Maybe.
ARTICLE SYNOPSIS...TRADING TECHNIQUES Whipsaws, Linear Trends And Simple Moving Averages by Robert Wayman How does whipsaw magnitude affect a simple moving average system? Here's a common solution for the problems of the SMA. Previously, we looked at cycles and found