The 50 DMA Breakout

The market internals thread has a chart of net number of stocks above their 50 DMA's. See the net number of stocks above their 50 DMA's rising steadily?

That is exactly your simple system - Buy on the breakout above the 50 DMA with good volume, and wait for the rains! Initial conditions in my scan were - Stock price between 20 and 200., Daily volume must be greater than 50000 etc.

Keep appropriate stops!

Just one example

ss

what sort of stop are you employing in this case ss? And what about the exit, do you sell when it falls below the 50 SMA?

You're quite correct though, I read somewhere that a study conducted on US stocks over several decades where the 200day SMA was used turned out to be more profitable with a person invested in the market only 1/3 of the time, as compared to buy and hold.

Guess the trend is definitely your friend lol.

Thanks, Marcus, yes the stop is 3% below 50 DMA and the exit- the trend is your friend untill it bends - whatever

Regards,

ss

dear all
pl.write an afl to search 50dma scan buy candidates of my data base on intraday basis and eod basis . as mentioned above take vol in to consideration to plot /alert signals on intraday and eod dataand price above 20
thanks in advance

ravi

Hi,

Thank you. I don't know anything about Amibroker AFL, so I can't help you, but there are some experts here in this forum who can sort that out.

Regards,
ss