Friday, November 24, 2006

Swing Trade - 3

I combined the EMA 90 with the EMA 21 in several variations. As usual now the results are surprising.

If the Close is:
< 90 > 21 33627
< 90 < 21 8214

> 90 > 21 18888
> 90 < 21 18911

This is for 1 trade a day, no more than 4 stocks in the portfolio at any one time, and the hold (swing) period is at least 1 day but no more than 4 days.

I made one other change to the filter - I took out the requirement for close to be greater than the last close. In other words any stock that meets the moving average requirement and has the highest average volume for that day is the stock that is selected. It doesn't get any simpler than that.

Obviously the best of the four options is when high volume stocks close below the EMA 90 but above the EMA 21. The second best is when they are above the EMA 90 and above the EMA 21. This fits into the pattern suggested by swing trade-2 where the best options were for stocks closing above their EMA 21 and MA 20.

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