Pick any 3 numbers for you moving averages. There alot of good article on the web on which time frames you should use. A typical one is 4,9,18 but this is not the only one that is commonly used.
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Sunday, August 10, 2008
use a triple moving average cross-over system to trade stocks
Triple moving average cross over system is designed to take the emotion out of trading. It times your entry and exits. This system can create alot of losers in a sideways moving market, but when it is trending this system is great.
When the fastest moving average(the moving average witht he lowest number) crosses above the the other two moving averages, then you open up a buy order.(see my other articles for managing risk)
When fastest moving average crosses below the medium speed moving average but is still above the slow moving average than close your buy.
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