Friday, October 19, 2007

MA 5 AND 20 CROSSES - The Proof

On 18 October 2007, the MA5 and 20 crosses. On the 19 October, the DJI index drops more than 300 points.
This justify the theory of Richard Donchian's MA5 and MA20.
Everytime when these two MA crossed, a reversal will occur.
Another MAs will which combine so well are MA3 and 5.
Based on the DJI chart, the two MAs crosses on the 12 October when the index was at 14092. Today it is 13522.

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