Friday, July 19, 2013

Investment Strategies, part 2

Second strategy is : 20 Weeks Moving Average (週均線) from林恩如

The rules are simple:

(1) When stock price stand above 20 Weeks Moving Average (100 days MA) AND 20 days Moving Average (20MA) in UP trend => BUY
Price cut 100MA, 20MA up


(2) When stock price drop below 20 Weeks Moving Average (100 days MA) AND 20 days Moving Average (20MA) in Down trend => SELL


Price cut 100MA, 20MA down

The strengths of this strategy is: you can catch the big trend and there is not many in-out. But (1) you need a lot of patient because it may take 2-3 months or more for buy signal. (2) not suitable for big fluctuation stock (3) not always success but if you really can catch the trend, you can earn big money easily. 


You can read more from 
if you understand Chinese. 


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