Using the Moving Average Channel: Part II
Summary
The MAC (Moving Average Channel) is very flexible. It can be used in at least five different ways. The MAC can be used for swing trading consistent with the trend. If the MAC trend is up, then buy at the moving average of the low (MAL) and take profit at the moving average of the high (MAH) or implement a trailing stop once achieved the initial profit target—the MAH. The MAC is a highly versatile method that has a variety of applications. These applications are not mutually exclusive. This chapter explains the additional applications of the MAC and their specific rules and besides that Moving Average Channel (MAC) exhibit more specifically how it can work as a trend indicator, timing indicator, and support/resistance swing trading method.