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The purpose of using two MAS is to slow the response time required for a crossover. This slowing, although beneficial because it generates fewer false signals, is also detrimental in that it requires a slower response time by the moving averages and thereby signals market entries and exits less responsively.

It is, therefore, very important to select the correct combination of MA lengths, a combination which strikes the proper balance of response time and minimization of false crossovers.

Although the application of two MAS seems to offer more profit potential and fewer false signals than does the price-versus-MA crossover, this approach is not one of the better ones, since it is subject to the limitations of all lagging market indicators.

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