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Old 03-06-2008, 09:49 AM   #2 (permalink)
alexchartfilter
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Quote:
Originally Posted by MBehr55 View Post
If you were going to use Simple Moving Averages for buy/sell signals for say a Mutual Fund. Which would you recommend for medium and long term trends? The particular niche I need this for is the federal gov's Thrift Savings Plan and their life cycle funds. I can use a website called TSPMoney to graph the individual funds with two moving averages. I'm wondering about a 10 or 20 sma vs. 50 sma for medium term and then maybe a 20 sma vs. 100 or 200 sma for long term.
To be totally honest I would not use sma's for buy sell signals. I would use them to confirm my trend. If you are using them to confirm your trend you may also want to look at keltner channels.

I personally find that SMA's lag too much and choose to use trendlines on the charts (I do tend to print a lot). I also include a MACD for my moving average component since it works best in trending markets while the oscillator tends to work best in a generally sideways trending market (ie: year of year flat/slight up or down with high up/down price movement) (in this newsletter DJIA chart shows a sideways trending market)

What I can suggest for you is the following moving average cross systems should serve you better than any individual SMA.

You may like the GMMA - guppy multiple moving average or a 4-9-18 cross.

Let me know if this is what you were looking for.

Alex
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