Nikkei look­ing sharp

Finweek English Edition - - MARKETPLACE - By Simon Brown

My purely tech­ni­cal lazy sys­tem is fir­ing a buy trigger for the Nikkei225 if the in­dex closes above 19 197 on Friday, 5 May. I will then be buy­ing this ex­change-traded fund (ETF) a lit­tle af­ter the open on Mon­day, 8 May.

As men­tioned, this is a tech­ni­cal sys­tem that uses a weekly chart of the in­dex with three ex­po­nen­tial mov­ing av­er­ages (EMAs). The first two EMAs are the 30- and 60-week EMAs and I need the shorter 30-week EMA to be higher than the 60-week EMA to in­di­cate an up­ward trend. With the above in place, I then wait for a weekly close that sees the in­dex value go from be­low to above the 15-week EMA dur­ing the course of a week. This is my trigger and oc­curred on Friday, 28 April.

The last part of the process is the con­fir­ma­tion and that re­quires a pos­i­tive week fol­low­ing the trigger be­fore I en­ter the trade. My exit is again based on the in­dex and will be a weekly close be­low the 30-week EMA.

My exit is again based on the in­dex and will be a weekly close be­low the 30-week EMA.

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