Short Term Trading Weekend Lounge: 18-20 Jan, page-31

Hi 48&34

I do have a couple of favorite chart indicators I use [not to make the decision but just to get the context of the moves]. I found that the weighted moving average moves a little faster than the exponential moving average so one indicator I developed for my self is to map the weighted mov av [set at 3 days for the closing price] against the exponential mov av [set at 4 days for the open price] and set up a couple of trend lines for what seems the likely trading channel. I look for sells when it trades above the upper trend line and buys when it's below. I pay attention to the crossovers of the 2 mov avs...there is a lag but its only about one trading day.

The other one I have only recently started to play with is a moving average envelope set at 20% for a 10 period.

My experience is about 3 [or 4] out 20 stocks I pick actually perform well and so how to get the maximum return from the winners is the focus. The way I approach it is so long as I am buying and selling either side of the high point of the bell curve I am doing OK. Almost never do I buy at the bottom nor sell at the top but so long as I am not always trading in the middle I should be doing well.