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please suggest your best strategies to handle securities in a trading range.
I'm attaching a weekly chart of EEM (ishares emerging markets index etf).
I picked an intermediate crossover signal like EMA-40 and EMA-10 (weekly chart) to avoid a lot of trading in and out of the security.
In hindsight, we know this is in a trading range. However, we don't know that in early 2011.
So, my question is "IF WE ARE USING A TREND BASED MODEL like using a MA crossover to determine entry and exit" how do we reduce our ability to reduce the constant lag as shown by my arrow points.
The reason I say "trend based model" is because one can easily look at this chart and suggest a RSI/MFI analysis to check overbought/oversold conditions. But this opinion is with the benefit of hindsight.