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Whipsaws Articles

 

Displaying Results for Whipsaws

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Wherever the stop loss is placed, there is the chance that the stock will reverse course after the stop loss is triggered. We wondered if there was an optimum stop loss placement that would minimize both the loss allowed by the stop loss and the probability of a reversal after the sale.

Many investors use the triple moving average crossover system to buy and sell stock. It can be adjusted so that its buy and sell signals are generated either more quickly or more slowly. The third moving average can help an investor avoid selling unnecessarily and buying when an apparent new trend is actually only a false start.

 
 
 

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