Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology (Wiley Trading) by Robert M. Lee & Peter Tryde

Author:Robert M. Lee & Peter Tryde [Lee, Robert M.]
Language: eng
Format: epub
Publisher: Wiley
Published: 2012-07-16T16:00:00+00:00

With three averages, there will be four factors. Using the preceding example, we add another medium-term average of 90 days. The moving average system will now consist of price, 50-day, 90-day, and 200-day averages. Figure 6.10 shows the Queuing Theory of directional movements of price and moving averages.

FIGURE 6.10 Movement patterns of price and three moving average lines.

There are various scenarios for the interplay of price and its three moving average lines. Figure 6.10 is one of the scenarios showing the alignment order of the relationship of averages and price. Subject to the volatility of prices, the various respective movements do not necessarily move at an orderly pace as shown in the table. Prices could traverse the average lines at the same time. (See Figure 6.11 and Figure 6.12.)

FIGURE 6.11 Daily chart showing the interplay of three moving averages and price from a downward trend to an upward trend, and then to a bracket market.

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