Some call it the brick wall. Others use it as a trend indicator. It's also noted as a place where institutions wait to load up or off load investments. I use the 200 MA on my charts as a trend gauge. If price is above the 200 MA, I only look to go long and if price is below, I only look to short. This all depends on other conditions as well. I also use it as a filter to help scan for stocks to potentially trade.
Financial dictionary definition: "A technical indicator compiled as a statistical series of a security's closing prices throughout 200 consecutive trading days. A 200-day moving average is designed to discover changes in a trend. Generally, a moving average is superimposed on a stock's line chart. If the stock price penetrates the moving average on the upside after a downward trend, the penetration is a signal to buy. But if the stock price penetrates the moving average on the downside following an upward trend, the penetration is a bearish sign. "200-day moving average
See this short YouTube video on the 200MA:
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