Friday, November 24, 2006

Swing Trade - 4

In this one I combined the SMA 200 with the SMA 20 in several variations.

If the Close is:
< 200 > 20 27871
< 200 < 20 4308

> 200 > 20 19994
> 200 < 20 12393

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

The filter requirements are exactly the same as those in Swing Trade - 3.

The obvious winner, again, is when the close is less than the 200 period moving average and less than the 20 day moving average.

If you do decide to use exponential moving averages you are probably going to be a little bit ahead of the average trader - by this I mean the exponential should get you into the trade before the other guy and that is a good thing. It will also get you out before him too and that, sometimes, is even a better thing.

None of these posts are recommendations - do your own due dilligence. Betting, uh, playing, uh, "investing" (wink wink nudge nudge) in the stock market is not as easy as it looks. Trust me - I've got the scars to prove it.