Some investors want to use exchange traded funds (ETFs) to exploit short-term movements in the markets.
Loren Fleckenstein for Trading Markets gives a primer on using 10-day and 30-day moving averages and the crossovers as a signal of a trend change.
The crossover occurs when a shorter moving average (the 10 day, in this case) traverses the longer moving average. But Fleckenstein says this information shouldn’t be considered alone. Instead, consider price breakouts and volume as confirmation of a trend shift.
