Moving Averages

(2 posts)
  • Started 1 year ago by srhightower
  • Latest reply from Donato

  1. Mayomaroyal
    Member

    Friends,

    Is it this simple? On your daily ETF graph, such as IVV, plot a 5 day moving average and a 15 day mov. avg. Buy when the 5 day crosses up through the 15 day and close your position when the 5 day crosses down through the 15 day. (You can alter the moving averages to any term that you wish such as a 15 day and 30 day).

    When plotting the SP-500 and the 5 day crosses down through the 15 day go short with SH.

    This works very well with my brokerage firm that has 25 ETFs that you can buy/sell with no commissions.

    Comments? srhightower@yahoo.com, www.freestockcharts.com

    Posted 1 year ago #

  2. Donato
    Member

    Hello Tower,
    The quick answer is that yes, good trading can be just that simple. There was a time I was playing with a cross over of the 5 and 10 day moving averages. I tried all sorts of combinations, for example, 5 EMA and 10 SMA. Everything worked with varying degrees of success.

    The only thing I might recommend today and going forward for the next couple of months (hopefully more) is to try and hold your positions longer; not selling as soon as the faster MA moves below the longer one. Or maybe run two stops, that way you can lock in some profits, while letting the other portion of your position have a chance of bigger gains. I'm not buying the hype of a double dip recession.

    Even though I like to trade, I've been setting up my account this past week to just soak in the profits going forward. I'm going to do everything I can to keep my fingers off of the buttons . . .

    Posted 1 year ago #

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