8/55 EMA Method

Discussion in 'Strategy Development' started by runningman, Jan 27, 2007.

  1. I'm working on a theory about breakouts using the 8/55 period EMAs. From anecdotal evidence, it looks like that after a stock 8 day EMA breaks the 55 day EMA, there is an initial pullback, then rally in the original direction of the breakout. Has anyone else done any work with this? What exit signal have you found useful in this setup?
  2. ===================
    Ran lots of moving averages for long times.

    Useful combo in the sense 8ema or 5 ema or 10ema/50 or 55dma shows short/medium trends. 200 ma shows long term trend.

    Actually dont use 55ma anymore, dont see any need to add 5 days to 5o.However its like a 40ma ,close enough to 5o to be useful.

    Exit helps include price,volume and a time stop;
    and a variation on time stop, didnt trade SEPT, its usually flat,
    not good for trends or moving averages.
  3. Tums


    2 ma cross over? always work on a trendy day.