That's very true, a strong trend works best. You'll see on the KMD example I posted that a 'fake-out' in the Aug/Oct crosses would have cost at least the brokerage fees, which would be material for the big buyers/sellers, if not a capital loss in that particular case. That's why I suggested 'confirmation', meaning for example the RSI, Money Flow, %R and various other indicators (depending on speed of indication) really should be well into the overbought/sold zones.

Anyway, I'm digressing from the action on KMD. What a mess! Looking forward to the fundamentals guys trying to figure out 'fair value'. Assuming this doesn't kill KMD, there will be some good buying in due course.

Quote Originally Posted by bunter View Post
just want to add that trading MA crosses isn't a guaranteed way to make money IMO.

With a non-trending item, the 50 and 200MA lines will cross often and the trades will usually result in a loss each time.