Interpreting Cash Flow through MAs

Discussion in 'Technical Analysis' started by cdcolvin, Nov 25, 2002.


    I've heard as prices approach a major moving average, they can break out if they cross over a moving average (going long). Please check out the graph for INTU below.

    A double bottom (orange circle) was formed prior to INTU crossing the 25 Day MA. When it crossed the 25 day MA (white circle), it continued up.

    According to, 1400 institutions own this stock. I am making an assumption that when a stock crosses over a moving average, institutions may start to buy (cash flowing into the stock), thus driving the price up.

    The stragegy: Place a buy order 12-25 cents above the moving average usint a stop. Rather than chase the stock up (it could reverse as it approaches the MA thus not triggering my order), if I place the buy just above the MA, the liklihood is it may continue to go up for a period. This way, the stock "chases" me. When it is filled, immediately place a stop below the moving average in case it goes against me.

    QUESTION: I'm using Metastock. I'd like to write an explorer to try and locate these patterns prior to the price crossing the MA.

    I can't seem to find a statement anywhere in Metastock's manual that will allow me to write a WHILE NOT or IF THEN statement that will allow me to find the W pattern a certain percentage below a moving average.

    Something like If today's close is higher than yesterdays close, then if yesterday's close....else...if yesterday's close was less than ....


    while not today < yesterday and yesterday not < xMA x .90

    Does anyone have any suggestions?



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