NIFTY




NIFTY EOD

Wednesday, July 1, 2009

TRADING SYSTEM USING THREE AVERAGES

Yahoo free chart
Nifty




TRADING SYSTEM USING THREE AVERAGES
The system features three moving averages:
fast, middle and slow.

Entry points are determined by the middle moving average crossing the long moving average
and exit points by the fast moving average crossing the middle moving average:

Go long when:
middle moving average crosses to above slow moving average from below;
AND fast moving average is above middle moving average.

Close long when
fast moving average crosses to below middle moving average from above.

Go short when:
middle moving average crosses to below slow moving average from above;
AND fast moving average is below middle moving average.

Close short when
fast moving average crosses to above middle moving average from below.