Composite Moving Trend

Composite Moving Trend is based on three Moving Averages. The shortest Moving Average (red) is showing the most recent direction of the price. If it is rising then we have a pre-buy condition. If the trend if confirmed by crossing of a long length (blue) Moving Average by a medium range (green) Moving Average then we have a buy signal. A sell signal is generated when the shortest Moving Average is falling and we have a downward crossing of a long range Moving Average by a medium range Moving Average.

This strategy is a variation of moving averages crossover strategy, with additional confirmation of the direction of the price trend.

Formula

IF MOV(t...t - n) >= MOV(t...t - m)
AND MOV(t...t - k) > MOV(t - 1...t - k - 1)
THEN GO LONG
ELSE GO SHORT
where MOV is a moving average and k < n < m
e.g. k = 5, n = 10 and m = 30

Stock Research Links

TRV MNRO HMN BBY MCO SR NNN UNM BF.B RGLD

< Back to Stock Predictor Site

Order >