ilmscore | Prediction Details
"So, if you were to add three moving averages to your chart to determine trend, your rules could be when the 20 is below the 50 and the 50 is below the 100, we are in a downtrend. There could be your first rule for a strategy. Your second rule could be when the another situation could be when the 20 period is in between the white 50 and the blue 100, then we are in consolidation and you don't look for trend continuation trades while in consolidation. Again, these are just examples of some rules you could create around moving averages. And here you see that the 50 and the 20 are above the 100. And there is a non-subjective rule for being in an uptrend. So now you have a non-subjective rule for downtrending markets and a non-subjective rule for consolidation when the 20 is in between the 50 and the 100 and a non-subjective rule for an uptrend based around that. You can create an entire trend continuation strategy. So what you can say is and these are just examples. These may not be strategies that I've actually tested, but you can say if my moving averages tell me we're in a downtrend. We have the 100 with the 50 below and the 20 below that telling me we're in a downtrend. Then I sell the 20 period moving average every time the market touches it."
By The Trading Channel (The Trading Channel) | August 22, 2016 | Pending
From video
How to use moving averages ( creating a trading strategy ) 00:08:07 - 00:09:36
Interpreted Prediction
The speaker outlines a rules-based strategy for trend continuation using three moving averages (20, 50, and 100 periods) to identify downtrends, consolidation, and uptrends, and suggests selling on each touch of the 20-period moving average in a downtrend.

Prediction Details

Topic
Moving Average Crossover Strategy

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