ETF Trends Forum » ETF Forum

TREND FOLLOWING

(3 posts)

  1. wstrad
    Member

    How do I determine what 'trend' is the one to follow and invest in?

    What is an appropriate time frame to determine a 'trend'?

    Is there a web site that can help me evaluate this?

    Posted 3 months ago #

  2. roughbert
    Member

    I've been asking myself the same questions. For my own purposes (and I think lots of people use this approach), I use the slope of a moving average to tell me whether the trend is up or down. Regarding time frame, it depends on your objective. Are you trying to identify buying signals from the price of the instrument relative to the MA? Or are you interested in a MA crossover? In either case, for many instruments, funds, shares and indices, the bloodbath of 2008 and Q1 of 2009 will dictate that the 200-day MA currently has a downward slope. If you are looking for recovery situations, you may want to look at a 100-day MA rather than the 200.

    The danger inherent in using too short an MA period is that a rough ride will bounce you out of your position more frequently. The danger inherent in using too long a period is that it keeps you out of the market for too long after a crash!

    Posted 1 month ago #

  3. craig7
    Member

    I have a site you may want to check out. It may be what you are looking for. http://www.etf-technical-analysis.com

    Posted 2 weeks ago #

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