Degree and nature of separation in the long term group define trend strength and weakness
Degree and nature of separation in the short term group define the nature of trading activity.
Degree and nature of separation between the two groups of moving averages define the character of the trend.
Compression shows agreement on price and value.
Compression of both groups at the same time indicate major re-evaluation of stock and potential for a trend change
Trade in the direction of the long term group of averages
The relationships between the groups provide the necessary information about the nature and character of the trend.
•Do not use as a moving average crossover tool