I'm curious as to what methods ASFers use to determine whether they are long or short on the market. I'm a discretionary trader of micro patterns, however I only enter into long patterns when the XAO is above the 25 day moving average and visa versa. I haven't found a great deal about this in what I have read to date.
Is this method too simplistic and am I using too much of a lagging indicator?
This method has worked relatively well to date, however there is a bit of whipsawing.