I have spoken before about using a very simple trading method using the SMA and MACD(zero line) in predicting moves in AAPL and GOOG,
Well, using the 50 day SMA and the MACD zero line on GOOG you will see how an entry signal was triggered back in Dec at just below $700 PPS when the stock moved over(positive) the 50 day SMA AND the MACD had crossed over(positive) the zero line.
This was a "buy" signal. The next exit signal occurred at the beginning of this month when the price crossed over the 50 day SMA (negative)and the MACD crossed back over the zero line into negative territory @ $790, for a nice $90.00/share profit over that 3 and 1/2 month period.
Well, the price line is about to cross into positive territory again BUT the MACD is still in jail in negative territory. I will wait until the MACD turns positive but this is your heads up for those who wish to trade with me.
If the MACD turns up, I am a buyer of GOOG.
Now look at AAPL. Our exit was last Oct @ $670. A short at that time would still have you short(except for an "in and out" whipsaw in late March) for a $280/share gain. I'm just saying, it is a sweet and simple trading paradigm and doesn't work all the time and does create some messy whipsaws, but who said trading was without some loss at times...who cares over the life of the trade?.....;-)
OK...GOOG crossed over the 50 day SMA, MACD crossed the zero line , stochastics saying up and away. Whipsaw time or opportunity?? Look at the 100's of dollars made trading this simple method over the past few years...
The 28 day SMA works great. It just gives more whipsaws. The 50 doesn't give up too much(late exit/late entry) and yet saves some whipsaw on these two particular stocks. If you do a side by side comparison on a 1 or 3 month chart for the two stocks, you will see how the 28 actually made more money, like in GOOG this past March, where the 28 got you out at about 812 cf to the 50 at 795.
So I had received some criticism about the whipsaws, and to avoid those move to the 50 day SMA. If you can stand the multiple(at times) whipsaws stay with the 28, as you do make more money in the end, even with all of the extra commissions.