R.C. Allen’s Strategy
A Triple Moving average crossover strategy 

The following is a quote from R.C. Allen’s book.  All of the following are the words written by R.C. Allen.   See also Triple Crossover System 

How to Use the Moving Averages

     Whenever the 4 day average moves above the 9 day average, a “watch to buy” signal is given.  When the 4 day average moves below the 9 day average, a “watch to sell” signal is given.     
     To make a successful trade, however, you need to wait for a more definite, clear-cut signal that such a “trading market” has come to a final end.  The market should then move, more decisively, in one direction.
     A clear-cut “buy signal” comes on the day when the 4 day average moves above the 9 day average and the 9 day average moves above the 18 day average.
     When the market moves steadily upward, the 18 day moving average will trail behind.  As the top approaches, the 9 day will begin to slow down.  It will then, slowly, make a rounding top and seem to stop moving higher.  When that occurs, the 18 day average gains ground on the 9 day average, moves closer to it and, eventually, moves above the 9 day average.
     The first day the 9 day average moves below the 18 day average you then have a signal to take profits on all of your long positions and “sell short.”
     Note: As a final check, make certain the 4 day average (a simple average which you keep each day but do not place on your chart) is also below the 9 day average or the downtrend could be a false move.  If it is, you should wait, temporarily, for another day or two until all of the signals given above confirm the end of the bull move and the beginning of the bear move.
     A clear-cut “sell signal” comes when the 4 day average moves below the 9 day average and the 9 day average moves below the 18 day average.
     In a bear market, the 9 day average will move steadily down and the 18 day average will lag behind.  As the bear market ends, the 9 day average slows down, makes a rounding bottom and seems to stop moving lower.
     The first day the 9 day average moves above the 18 day average, you then have a signal to take profits on all of your “short positions” and buy for the next bull move.
     Note: As a double check, make certain that the 4 day moving average is also above the 9 day average or the new bull move could be a false one.  If it should be a false move, wait for another day or two until all of the signals given above confirm the fact the end of the bear market has arrived and a new bull market is about to begin.