Sunday, July 02, 2006

Using Averages

I like using averages for keying trades because I like to follow the trend and when the average turns the trend is in place. But if I take a trade using a 20 period average as a main line and its 5 period average as a trigger, I will normally use a shorter period or even an exponential average to signal the end of the trade. I don't mind going in a little late but I hate coming out late.

No comments: