weekend charting 8th jan 2010, page-95

Hi Grubby

When the price crosses up over the 41 EMA it is a buy signal. Some ony use the 41 EMA as buy & signals, but I normally use it as a "trigger" after which I look for other confirming signals. There are many examples where the cross occurs during a short term spike, so buying exactly when it crosses will see you paying too much. The example of ORD which I posted earlier today is a good case in point - it gapped up to cross the 41 EMA and has then consolidated somehwat in the days since - better to wait for the next buy signal on the Stochastic when the next swing bottom is confirmed. I also consider the 41 EMA a "sell no later than" signal because frequently the price will have come quite a way off a peak before it crosses down over the 41 EMA, so I'm looking for indications that the trend has changed against the long term such as divergence with the MACD to price or toppy signals on the Stoch and/or MACD if I've got reason to think the downards 41 EMA cross is imminent.

When the 41EMA crosses over the 195EMA it is an indication of a solid long term trend in that direction. Again, it depends on your investment/trading timeframe - you can let it ride longer term or use the trend to swing trade in that direction with confidence as the "trend is your friend".

I dont use etrade so I wouldnt know how to set a stop on their platform. Normally I set the stop when I enter the trade - it should give you an option when you set the trade parameters (buy price, limit, stop, conditions if any such as falling sell, which would be the equivalent of a stop). Probably best to call your broker and ask them for som technical advice - they make enough money from you, make them earn it :-)

Hope this helps.

Cheers, Sharks.