On 5/5/03 I posted how I use the time above and the time below the 50 day moving average of an index in determining the strength of weakness of a market. Since then the time above the 50 day average for the S&P 500 has continued to expand. The next step in the indicator is to see how the index performs when it comes back and touches the 50 day line. Bullish behavior is to go below the line for one day and then rocket back above.
What timeframe do you use and why 50MA . Do you have some specific rule like: If price is ( on 10 min chart) more then 1 hour above, go short ? Thanks, Walter
I use the 50 day average just to determine the strength of an intermediate term trend. I view that trend as approximately four weeks in length. I don't know how the indicator would work if you took it down to 50 five minute periods.
http://www.trade-ideas.com/SingleAlertType/CA50/Crossed_above_50_day_moving_average.html http://www.trade-ideas.com/SingleAlertType/CB50/Crossed_below_50_day_moving_average.html