Scot Lowry wrote a book - 'The Magic of Moving Average ', his approach to trading is finding good entry points, with the least amount of risk - so - his system is this. 1. Plot 3 simple moving averages - a 4 , a 18 and a 40 2. When the 18 crosses over the 40 line, you start watching for a buying point. 3. The buying point is -- when the price of the stock comes down to the 18 line - and closes under it - you place a stopbuy just above the 18 line - this will get you into the stock when it reverses and moves above the 18 line . After that , you maintain a stoploss at a price that is halfway between the 18 line and 40 line. 4. His sell signal is similar.