The moving average channel (MAC) is a method that was developed and refined over twenty years ago. It is very useful and effective in stocks and futures. It offers a specific method for determining the initial stop-loss for a trade once there has been a setup and a trigger. It defines the exact procedure for different position sizes and commands on how and when to trail stop-losses. The MAC is based on moving averages of highs and lows, as opposed to the use of traditional moving average crossover systems, which use the moving average (MA) of closing prices The MAC uses two MAs, one of the high price and one of the low prices. In so doing, the MAC is quite different than traditional moving averages and it is not subject to many of the same limitations that inhibit the performance results with traditional moving averages.