So, is MA(20) on daily charts a watershed line between up-move
and down-move in this situation? On the $SPX MA(20)=1125 is the
(last) support for the bulls that was mentioned many times in
intraday updates. I am trying to figure out a general principle
here. Thanks for any practical knowledge in this regard.
Investors Business Daily recommends using MA(50) in this
situation, however, on many stocks it is quite far from the current
prices.
The 20 day is NOT the last support but it should be held in this
instance for the current uptrend to continue. It has NEVER
been stated as the LAST support so please review the updates.
The 20 day MA should be viewed simply as a guide to the short
term trend.
My bad, you said it much better. Would it be proper to say
that
MA(20) defines the short-term trend, MA(50) defines the
intermediate-term trend and MA(200) defines the long-term trend? (A
"golden" cross then ensures that both inter-mediate and long-term
trends are either confirmed bullish or confirmed bearish, for
example.)
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Shorting CAAS
Posted by junkie on 14th of Jan 2010 at 09:30 pm
It looks like CAAS is in its wave 2 or in early wave 3 down. Any suggestion for a good short entry point? EMA(84)=23.87 on 15-minute charts?
Similarly, CSIQ is definitely in its wave 3 down, with wave 1 being completed today. Any suggestion on this beast (I don't have much luck trading it)?
CSIQ looks mighty poor on
Posted by steve on 14th of Jan 2010 at 09:45 pm
CSIQ looks mighty poor on the daily. CAAS has some problems as well as it may be forming a small HS top with a gap below sucking on it.
So, is MA(20) on daily
Posted by junkie on 14th of Jan 2010 at 09:54 pm
So, is MA(20) on daily charts a watershed line between up-move and down-move in this situation? On the $SPX MA(20)=1125 is the (last) support for the bulls that was mentioned many times in intraday updates. I am trying to figure out a general principle here. Thanks for any practical knowledge in this regard.
Investors Business Daily recommends using MA(50) in this situation, however, on many stocks it is quite far from the current prices.
The 20 day is NOT
Posted by steve on 14th of Jan 2010 at 11:26 pm
The 20 day is NOT the last support but it should be held in this instance for the current uptrend to continue. It has NEVER been stated as the LAST support so please review the updates. The 20 day MA should be viewed simply as a guide to the short term trend.
My bad, you said it
Posted by junkie on 15th of Jan 2010 at 02:49 am
My bad, you said it much better. Would it be proper to say that
MA(20) defines the short-term trend, MA(50) defines the intermediate-term trend and MA(200) defines the long-term trend? (A "golden" cross then ensures that both inter-mediate and long-term trends are either confirmed bullish or confirmed bearish, for example.)