A dynamic analysis of moving average rules$

and a (long-run) MA. Both types of traders are boundedly rational in the sense that, based on ARTICLE IN PRESS www.elsevier.com/locate/jedc $An earlier version of this paper was prepared while Tony He was visiting CeNDEF, whose hospitality he gratefully acknowledges. This work has been presented at the CEF-conference, July 8–10, 2004