This is very significant!!!
TACTICSJoin established trends at points of price weakness
Join established trends breaking into new highs
Trade breakouts using rally drops and rebounds
Trade downtrend rallies as rallies Instead of trend breaks Recognise trend fractures as they grow
RULESDegree and nature of separation from the long-term group specify trend strength and weakness
Degree and nature of separation from the short-term group specify the nature of trading action.
Degree and nature of separation between the two groups of moving averages specify the character of the trend.
Compression shows agreement on price and worth.
Compression of both teams at the same time indie major re-evaluation of stock and possible for a trend change
Trade in the direction of their long-term group of averages
The relationships between the groups supply the necessary information about the character and nature of this trend. Don't use as a moving average crossover tool
ADVANTAGESEnables powerful analysis of the trend environment
Improves choice of the Right trading tactics
Better understanding of trend strength
Successful evaluation of unusual price movements, like drops and spikes Powerful Comprehension of trading action and behaviour
DISADVANTAGESNot effectively applied to trend less stocks
Can't Be applied to all stocks that were trending Don't use as a moving average crossover signal