Not into moneyweek as a publication, but thought this may be an interesting debate. Especially for trend followers: -
http://www.moneyweek.com/investments/st ... rket-13601
This signal is warning you to get out of the market
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- Posts: 165
- Joined: Thu Oct 29, 2009 12:37 am
I came across the "death cross" indicator too a while back, again there seems to be material on the web to both support and refute the theory which should no doubt help to muddy the water even further.
http://pragcap.com/the-death-cross-does ... o-its-hype
http://pragcap.com/the-death-cross-does ... o-its-hype
I don't think there's anything magical about a 50/200 moving average crossover, or any huge sigificance about the direction in which the 200 line is pointing.
Using 10/20 moving average crossovers will also give you a healthy profit.
But 50/200 crossover is a viable entry signal (although the author doesn't tell his readers where they should close their trades!).
Jeff
Using 10/20 moving average crossovers will also give you a healthy profit.
But 50/200 crossover is a viable entry signal (although the author doesn't tell his readers where they should close their trades!).
Jeff