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Charting and Studies User Guide - CQG.com

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Page 563<br />

Moving Average Method: This method is the most conservative of the three approaches <strong>and</strong><br />

is identified by the moving average itself reversing direction. Figure 6 is an example of a<br />

downtrending market that has reversed. Notice that now the price action is above the 49-Day<br />

Moving Average. While the actual reversal of the moving average is by far the most reliable<br />

indicator, it is less timely since the signal often occurs well after a move has begun.<br />

<strong>Charting</strong> <strong>and</strong> <strong>Studies</strong> <strong>User</strong> <strong>Guide</strong>

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