[isatrader]

Isa - I was re-reading Stan's book this morning and in Chapter 1 (page 14 of my copy) under the Moving Average section Stan says, "Over the years, I've found that a 30-week moving average (MA) is the best one for for long-term investors, while the 10-week MA is best for traders to use."

Is there anywhere later in the book that he expands on traders using the 10-week MA rather than the 30-week MA? I seem to remember him saying that he would explain it in a later chapter but I'm having trouble finding it. Do you know where that might be located so I can brush up on this piece of the strategy? I had assumed that it would be in the traders section of Chapter 3 but I did not see it.

Thanks in advance.

No, he doesn't expand on using the 10 week MA later in the book unfortunately, as the trader method part of the book had a lot of unanswered questions, which I've tried to find answers to over the years of studying the method.

Basically imo, you only want to be in trader positions during the momentum part of the advance that stays mostly above the 10 week MA (50 day MA) with only occasional pullbacks to the 10 week MA. But once the momentum starts to wane and the stock starts to trade mostly below the 10 week MA then it's likely entering a more significant pullback in it's Stage 2 advance towards the 30 week MA, which can last many months, and so a trader would want to move onto another stock until the significant correction is over and the stock starts making a weekly close above it's 10 week MA once more before making a Stage 2 continuation break out. As a trader wants to avoid the significant pullback/consolidation periods and always be where the momentum is. So the 10 week MA does a good job of capturing those periods, and you can use trendlines as well when they form to further help with timing your exit.