Hi SandyThe 5 Exp and 20 Simple MAs are having a similar effect...

Hi Sandy


The 5 Exp and 20 Simple MAs are having a similar effect on our XJO.

Presently it appears that there is an upward trend possible with 5 Exp moving up to catch up with 20 MA on the shorter term.

it is interesting to note that whenever the 5 exp crosses over and then move downward across 20 MA, the index drops off sharply.

But in some cases the index is moving along sideways.

Queries:

1. How do you estimate this pattern of sideway move or steep fall? Is it by the steepness of the angle of downward crossover?

2. How do you estimate that the trend is turning up after a fall from the 5 exp MA?

Thanks

sara