exponential moving average

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Moving averages are technical trading indicators for capturing trends. This post shows the backtesting data and system equity curve versus buy and hold using TrendSpider.com. 

moving averages
Chart Courtesy of TrendSpider.com

This is the backtest based on buying $QQQ when the 5 day EMA crosses and closes over the 20 day EMA and then selling when the 5 day EMA closes back under the 20 day EMA:

5 day 20 day EMA crosover
Chart Courtesy of TrendSpider.com

This is the backtest based on buying $QQQ when the 10 day EMA crosses and closes over the 50 day EMA and then selling when the 10 day EMA closes back under the 50 day EMA:

 

 

10 day 50 day EMA crossover
Chart Courtesy of TrendSpider.com

This is the backtest based on buying $QQQ when price closes over the 200 day EMA and then selling when price closes back under the 200 day EMA:  

200 day ema
Chart Courtesy of TrendSpider.com

This is the backtest based on buying $QQQ when price closes over the 250 day EMA and then selling when price closes back under the 250 day EMA:

250 day ema
Chart Courtesy of TrendSpider.com

If you are interested in learning more about using moving averages in trend trading systems here are my additional resources:

Here are my three moving average books:

Trading Tech Booms & Busts for $QQQ http://amzn.to/2tMRDQ0
5 Moving Average Signals That Beat Buy and Hold with $SPY http://amzn.to/2tMEhmV
Moving Averages 101: Incredible Signals That Can Make you Money http://amzn.to/2tHHhNi
50 Moving Average Signals That Beat Buy and Hold https://amzn.to/2Qf8DHg
 

Here are my two moving average eCourses: