Below all three moving what?

Discussion in 'Technical Analysis' started by cashmoney69, Jul 24, 2006.

  1. When a stock is below all your MA's but has recently had big moves, do you

    1. Wait till it rises above an MA

    2. Short when stocks are below ma's

    3. Avoid the stock all together


    example --> yahoo

    thanks :)

    - Nathan
  2. Depends on what numerical moving averages you are using.
    For example, are they SIGNIFICANT to begin with?
    And if so, how?
  3. I would also look at MACD and RelativeStrength-14 as well...
  4. I'm using

    10 sma
    35 sma
    50 sma

    on daily charts (4 months)
  5. Why? If you don't have a specific reason for them then they don't belong on your chart.
  6. the 10 and 35 are for early signals (crossovers), the 50 is just for general reference. Seems to be used by many traders regardless of time frame.
  7. Those ma's are worthless.
  8. Ok, well what would you use?..and why are they worthless?
  9. Geez folks, its really pretty simple

    Here is the weekly chart showing a channel that price has traded in for quite a while.

    Then I put in a horizontal line to show where previous resistance turned into current support.
  10. Here's the daily chart showing the same support levels

    I realize some of you like to work with EMAs. Don't change on my account, but it does help to check out support/resistance levels on a couple of time frames.

    Good luck
    #10     Jul 25, 2006