1. PRICE ABOVE 200D MA;
2. 18 MA CROSS FROM BELOW 40D MA;
3. PRICE CROSSES FROM ABOVE THE 18D MA;
4. ENTER LONG WHEN PRICE CLOSE ABOVE 18D MA.
5. EXIT WITH CLOSE BELOW 40D MA.
REVERSE PROCESS FOR SHORTS.
WHAT DO YOU THINK?
1. The 200 Day is your trend marker, which means if above you only can go long and below you can only go short.
2. IF 18 is above 40 then you are looking for long trades and vice versa for shorts.
3. When looking for long trades, you need to wait for the price to cross the 18MA from above, and you only enter when price crosses again from below the 18MA. This rule helps you avoid the whipsaws that are so common in the moving averages systems.
4. You place the stop below 40 MA.