A common strategy among chartists and analysts involves plotting two
moving average lines of different time intervals and interpreting their relationship to spot trends, forecast price movements and place trades.
The direction and slope of
moving average lines inform investors about the relationship between historical data values and present data values.
The 1 % gain over the past week has the index well above
its moving average lines and just slightly behind large caps in terms of performance... Read More
Our cushion of 1 % prevents increased buying and selling when the index price moves above and below
its moving average lines frequently.
Bounces off the 200 Day exponential
moving average lines keep getting weaker for all the major indexes.
Even the venerable Moving Average is touted by describing how prices «seek»
the moving average line.
Even the venerable Moving Average is touted by describing how prices «seek»
the moving average line.
On the other hand, when the price moves below
its moving average line, that would signal a downtrend.
When the price moves above
the moving average line or «crosses over», that signals an uptrend.
The number of reporting periods included in the moving average calculation affects
the moving average line as displayed in a price chart.
• Another is noting
the moving average line crossovers and their relationship to the center line.»
When the price of the stock moves above
the moving average line, it's a buy signal and when the price of the stock goes below
the moving average line, it's a sell signal.
The area between
the moving average line and each band produces a range, or channel.
The market as a whole agrees that if and when they want to vote, so to speak, on whether the market should reverse trend and head in the opposite direction, they'll meet and hold that vote at the 200 - day
moving average line.
Look at the five year
moving average line on his graph and see that the steep rising trend only began in 1976.
I'd say that the heavy dark blue straight line is the linear trend of the ten - year
moving average line.
The ten - year
moving average line in the second (Wallace) chart is clearly wrong or seriously misleading.
By looking at the BTC / USD 20 - day
moving average line, it's safe to assume that it will stay above $ 7,400 for a while.
Not exact matches
You saw a stock that consolidated sideways, broke its 50 - day
moving average, found support for a while right around the uptrend support
line,» he said.
«But the big break didn't happen on the 50 day, the big break happened below your 200 - day
moving average in your uptrend support
line.»
The Nasdaq's
moving average convergence - divergence
line fell below zero during the early February sell - off before returning to above that level on Feb. 21.
By comparison, the daily chart of the iShares Russell 2000 Index ETF ($ IWM) shows the recent weakness that has led to a breakdown below three different levels of technical price support: the low of the multi-week trading range (around $ 93), the 20 - day exponential
moving average (beige
line), AND the dominant uptrend
line (which began with the November 2012 low):
$ 1307 - 10 — five bottoms — 3/16, 3/19, 3/20, 3/21 and 4/30 lows $ 1312 — 5/2 high $ 1315 — double bottom — 4/26 and 4/27 lows $ 1319 — 4/25 low $ 1323 — 100 - day
moving average $ 1321 - 23 — quadruple bottom, 3/29, 4/5, 4/6 and 4/23 low $ 1324 - 25 — double top, 4/27 and 4/30 highs $ 1325 — options $ 1329 — 50 day
moving average $ 1331 — 40 day
moving average $ 1332 — 20 - day
moving average $ 1332 - 33 — double top - 4/24 and 4/25 highs $ 1335 — 4/23 high $ 1334 - 35 triple bottom — 4/12, 4/13, and 4/20 lows $ 1335 — 50 % retracement of down
move from 1/25 $ 1366 high to 3/1 $ 1303 low $ 1337 — up trend
line from 12/12 $ 1236 low $ 1338 — 4/17 low $ 1341 — 4/19 low $ 1345 — down trendline from 8/2013 weekly chart $ 1346 — 4/20 high $ 1350 — options $ 1350 — down trendline from 1/25/18 $ 1366 high $ 1355 - 57 — quadruple top, 3/26, 3/27, 4/18, and 4/19 highs $ 1365 — down trendline from 7/6/16 $ 1375 high $ 1365 - 67 — 6 tops 4/11, 1/25, 8/2/16, 8/3/16, 8/4/16, and 8/5/16 highs $ 1375 — 7/6/16 high $ 1388 - 89 — double top 3/16/14, 3/17/14 highs
Although $ PCLN and $ AMZN had a rough day, both stocks are still trading above their respective 50 - day
moving averages (an intermediate - term «
line in the sand» for many retail and institutional traders / investors).
After three shakeouts below the 50 - day
moving average (on 3/22, 4/5, and 4/15), $ THD has reclaimed the 50 - day MA and is poised to break out above the short - term downtrend
line of the consolidation.
The fact that we always patiently wait for such price confirmation is the reason we did not immediately buy $ DZZ on its first touch of support of its 20 - day exponential
moving average (beige
line) three days prior.
While being long above the two - hundred day
moving average is a good rule of thumb, being long above the two - hundred day
moving average while the
line is trending higher is even better.
Specifically, we expect $ TAN to come into support of its 10 - week
moving average (teal
line) before it could be considered a low - risk re-entry on the buy side.
This is the convergence of several
lines: the Bolinger Band 15m - Middle, the Simple
Moving Average -5-1hv, the SMA -5-4h, the Fibonacci 38.2 % one - day, the SMA10 - 15m, the Bolinger Band 1h - Middle, and the SMA -5-15m.
In the following session, the price action was extremely volatile, but still held well above both the previous day's low and 20 - day exponential
moving average (beige
line).
The red
line tracks the ups and downs of the key weekly
moving average.
$ 1319 — 4/25 low $ 1322 — 100 - day
moving average $ 1321 - 23 — quadruple bottom, 3/29, 4/5, 4/6 and 4/23 low $ 1324 - 25 — double top, 4/27 and 4/30 highs $ 1325 — options $ 1332 — 50 day
moving average $ 1332 — 40 day
moving average $ 1332 - 33 — double top - 4/24 and 4/25 highs $ 1334 — up trend
line from 12/12 $ 1236 low $ 1335 — 4/23 high $ 1334 - 35 triple bottom — 4/12, 4/13, and 4/20 lows $ 1335 — 50 % retracement of down
move from 1/25 $ 1366 high to 3/1 $ 1303 low $ 1335 — 20 - day
moving average $ 1338 — 4/17 low $ 1341 — 4/19 low $ 1345 — down trendline from 8/2013 weekly chart $ 1346 — 4/20 high $ 1350 — options $ 1350 — down trendline from 1/25/18 $ 1366 high $ 1355 - 57 — quadruple top, 3/26, 3/27, 4/18, and 4/19 highs $ 1365 — down trendline from 7/6/16 $ 1375 high $ 1365 - 67 — 6 tops 4/11, 1/25, 8/2/16, 8/3/16, 8/4/16, and 8/5/16 highs $ 1375 — 7/6/16 high $ 1388 - 89 — double top 3/16/14, 3/17/14 highs
$ 1321 - 23 — quadruple bottom, 3/29, 4/5, 4/6 and 4/23 low $ 1325 - options $ 1330 — up trend
line from 12/12 $ 1236 low $ 1332 — 40 day
moving average $ 1332 - 33 — double top - 4/24 and 4/25 highs $ 1333 — 50 day
moving average $ 1335 — 4/23 high $ 1334 - 35 triple bottom — 4/12, 4/13, and 4/20 lows $ 1335 — 50 % retracement of down
move from 1/25 $ 1366 high to 3/1 $ 1303 low $ 1337 — 20 - day
moving average $ 1338 — 4/17 low $ 1341 — 4/19 low $ 1345 — down trendline from 8/2013 weekly chart $ 1346 — 4/20 high $ 1350 — options $ 1352 — down trendline from 1/25/18 $ 1366 high $ 1355 - 57 — quadruple top, 3/26, 3/27, 4/18, and 4/19 highs $ 1365 — down trendline from 7/6/16 $ 1375 high $ 1365 - 67 — 6 tops 4/11, 1/25, 8/2/16, 8/3/16, 8/4/16, and 8/5/16 highs $ 1375 — 7/6/16 high $ 1388 - 89 — double top 3/16/14, 3/17/14 highs
Notice how the price crashed through the 200 - day
moving average, which is typically a «
line in the sand» as a long - term indicator of trend:
The 50 - day
moving average (teal
line) is above the 200 - day
moving average, and the 20 - day exponential
moving average has crossed above the 50 - day
moving average.
However, after a strong 10 - week advance from the touch of the 40 - week
moving average (orange
line) in late June, $ PGJ may now be due for a healthy 4 - 5 week correction.
For the sake of brevity, we will skip analysis of the Dow Jones SPDR ETF ($ DIA) because both its daily and weekly chart patterns are quite similar to SPY above (broke down firmly below its 50 - day
moving average yesterday, and is also coming into support of its year - long uptrend
line).
Considering the NASDAQ has recently broken a 17 - month uptrend
line and its 10 - week
moving average (blue
line above) is rolling over, negative price momentum is certainly building.
$ 1325 - options $ 1330 — up trend
line from 12/12 $ 1236 low $ 1331 — 4/10 low $ 1332 — 40 day
moving average $ 1333 — 50 day
moving average $ 1335 — 4/23 high $ 1334 - 35 triple bottom — 4/12, 4/13, and 4/20 lows $ 1335 — 50 % retracement of down
move from 1/25 $ 1366 high to 3/1 $ 1303 low $ 1338 — 4/17 low $ 1349 — 20 - day
moving average $ 1341 — 4/19 low $ 1345 — down trendline from 8/2013 weekly chart $ 1346 — 4/20 high $ 1350 — options $ 1352 — down trendline from 1/25/18 $ 1366 high $ 1355 - 57 — quadruple top, 3/26, 3/27, 4/18, and 4/19 highs $ 1365 — down trendline from 7/6/16 $ 1375 high $ 1365 - 67 — 6 tops 4/11, 1/25, 8/2/16, 8/3/16, 8/4/16, and 8/5/16 highs $ 1375 — 7/6/16 high $ 1388 - 89 — double top 3/16/14, 3/17/14 highs
The green
line is the 200 - week simple
moving average.
In bull markets, the 50 - day
moving average is our pivotal «
line in the sand.»
On the daily chart below, notice that the 20 day
moving averages recently crossed above the 50 day
moving average, which is a bullish signal, although the 200 - day
moving average (orange
line above the current price) has not yet started sloping higher.
Since selling off to «undercut» support of its 50 - day
moving average two weeks ago, the inversely correlated ProShares UltraShort Euro ($ EUO) has been trading in a tightening, sideways range, holding above support of its primary uptrend
line and 50 - day
moving average.
The Nasdaq 100 doesn't have to lead the broad market higher, but we certainly do not want the price to break down below the 50 and 200 - day
moving averages (teal and orange
lines, respectively, on the chart above).
At a federal - provincial finance ministers» meeting in December 2012, the Finance Minister announced that, starting in 2017 - 18, the rate of growth in the Canada Health Transfer (CHT) would be reduced from 6 per cent per year to grow in
line with a three - year
moving average in nominal GDP, with a funding guarantee to grow by at least three per cent per year.
Drilling down to the daily chart interval below, we see the 50 - day
moving average (teal
line) now trading above the 200 - day
moving average (orange
line), and both indicators are
moving higher.
We plan to continue holding $ EPI as long as the price action remains above the 20 - day exponential
moving average (beige
line on the chart below):
Furthermore, notice how the orderly pullback from the recent highs has enabled the price to find support at its 20 - day exponential
moving average (beige
line):
$ 1335 — 50 % retracement of down
move from 1/25 $ 1366 high to 3/1 $ 1303 low $ 1334 - 35 triple bottom — 4/12, 4/13, and 4/20 lows $ 1333 — 50 day
moving average $ 1332 — 40 day
moving average $ 1331 — 4/10 low $ 1328 — up trend
line from 12/12 $ 1236 low $ 1321 — double bottom, 3/29 and 4/6 lows $ 1318 — 100 - day
moving average $ 1313 - 15 — quadruple bottom, lows 3/2, 3/9, 3/12, 3/13 $ 1307 - 10 — quadruple bottom — 3/16, 3/19, 3/20, and 3/21 lows $ 1303 — 3/1 low $ 1302 — 200 - day
moving average $ 1302 — 1/1 low $ 1301 — 50 % retracement of up
move from 12/12/17 $ 1236 low to 1/25/18 $ 1366 high $ 1300 — psychological level, options $ 1294 — 12/29 low $ 1287 — 12/28 low $ 1281 — 12/27 low
$ 1319 — 4/25 low $ 1320 — 100 - day
moving average $ 1321 - 23 — quadruple bottom, 3/29, 4/5, 4/6 and 4/23 low $ 1325 - options $ 1332 — 40 day
moving average $ 1332 — 50 day
moving average $ 1332 - 33 — double top - 4/24 and 4/25 highs $ 1333 — up trend
line from 12/12 $ 1236 low $ 1335 — 4/23 high $ 1334 - 35 triple bottom — 4/12, 4/13, and 4/20 lows $ 1335 — 50 % retracement of down
move from 1/25 $ 1366 high to 3/1 $ 1303 low $ 1337 — 20 - day
moving average $ 1338 — 4/17 low $ 1341 — 4/19 low $ 1345 — down trendline from 8/2013 weekly chart $ 1346 — 4/20 high $ 1350 — options $ 1352 — down trendline from 1/25/18 $ 1366 high $ 1355 - 57 — quadruple top, 3/26, 3/27, 4/18, and 4/19 highs $ 1365 — down trendline from 7/6/16 $ 1375 high $ 1365 - 67 — 6 tops 4/11, 1/25, 8/2/16, 8/3/16, 8/4/16, and 8/5/16 highs $ 1375 — 7/6/16 high $ 1388 - 89 — double top 3/16/14, 3/17/14 highs