Triple Momentum System
Gerald Appel, is probably best known for his creation - Moving Average Convergence Divergence (MACD). However, he also is credited with the creating the Triple Momentum Signal (Below).
Mr. Appel’s advice is, “There is only one buy rule and only one sell rule: You buy when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from below to above 4%. You sell when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from above to below 4%.“
Back testing Appel’s system against QQQ since it’s inception returns some very nice results (long trades only). Notice however, that only 37% of the trades are winners, typical of a trend following system. Reminder; this test is only against QQQ not any other market or security.
ETF Range Projections for 5.16.12
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