Following the S&P's Crossovers
It is hard to argue with the successes of long-term trend trading. While it is more complex than a buy-and-hold strategy, it is simple in its basic premise of following moving-average crossovers.
The graph of the 13- and 20-period monthly moving averages of the S&P 500 at the top of the chart provides a good illustration of the concept. When the 13-period average crossed below the 20-period average in early 2001, it marked the start of a multi-year decline, and when they crossed again in 2004, it confirmed the uptrend that began in 2003. Similarly, a bearish crossover in the first half of 2008 marked start of the severe selloff that year, and the bullish crossover in 2011 gave the all-clear sign....269 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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