A rule of thumb is that the indicator window should be half the length of the cycle 14 days is popular for the intermediate cycle.
Use trailing buy- and sell-stops , to enter and exit trades, and protect yourself with stop-losses. Signals should only be taken when there is clear evidence that the trend has reversed. Note that we are whipsawed fairly frequently if MA is used as the trend indicator, even with closing price as a filter. To alter the default settings - Edit Indicator Settings.
Mouse over chart captions to display trading signals. Compare our market views. The weekly Trading Diary offers fundamental analysis of the economy and technical analysis of major market indices, gold, crude oil and forex. More than , subscribers - Read it now. We do not spam. We are stopped in [L] when price rises above the previous day's High. Protect your position with a stop-loss below the recent Low. We are stopped in [S] when price falls below yesterday's Low. The position is stopped out [X] on the following day when price rises above the recent High.
Place a trailing sell-stop. A bearish divergence supports the signal. A triple divergence adds further support for the short position. When stopped in [L], place a stop-loss below the recent Low.
When stopped in [S], place a stop-loss above the recent High. Place a trailing buy-stop: Another signal to go short. We are stopped in 5 days later when price falls below the previous day's Low.
Protect your position with a stop-loss above the recent High. Alternatively, use a trend indicator for trend direction and exit signals. The monthly What's New newsletter covers new articles on Trading and the Economy, as well as new software updates. Protect your capital with money management and trailing stop losses.More...