Moving average strategy

I use Simple Moving Average (SMA) as the trend indicator for all ETFs. On a weekly chart, I use 3 SMA lines such as MA-4, MA-18 and MA-39 for SPY (S&P 500 ETF) in my trend analysis. The concept is not new with weekly price crosses 39-week moving average. It was widely published by Dick and Doug Fabian in their newsletter years ago. I found this technique is still accurate with merit. Also I found that some ETFs tend to trend in either direction more steady than others, the daily charts can be applied with some ETFs as an aggressive approach. 

I modified slightly by using the 4-week MA instead of the price to smooth out the cross-over curve. Here are the basic rules that I would use in my analysis:

Buy signal:

1. MA-4 crosses above MA-39 (up trend confirmed, initiate a buy)

Sell signal:
1. MA-4 crosses below MA-18 (evident of down trend movement). I may reduce the size of the Long position to lock in some profits or minimize the loss.
2. MA-4 crosses below MA-39 (down trend confirmed, sell all existing position)

Of course, the rules mentioned above was just one of many technical analysis techniques and there are so many other techniques out there. Other additional indicators may be useful to confirm these signals such as MACD, RSI  etc which I also use.

Daily charts can be applied with some ETFs which these ETFs tend to trend more steady that others. direction 

Ocean