50 Day Moving Average

Stocktrading101 · #1 (**permalink**) 12-19-05, 01:12 PM

One of the most unde rated technical indicators I think. Not enough people use this to make easy money. It is a fact that a stock will stay within a certain range of the line. If a stock is overbought, look for downward spread; if the stock is oversold, look for an upward trend. Experience is what makes this line so valuable, as it can be easy to misinterpret. The fun part is that it takes a support and a resistance point depending on the chart. Fun with the 50 MA.

Regards,

spncr2 · #2 (**permalink**) 01-07-06, 02:13 PM

Good call Blain, i guess this relates to your "KISS" theory quite well.

It works for a quick evaluation of where a stock is headed depending on if the price of the stock is close to or far from the 50day MA. Not only being close to is, but if it's below or above the stock price. A little comprehension is needed to realize patterns for it and the comparison between the two. Very nice technical indicator. I also use the 20 day MA as well.

All the best,

Stocktrading101 · #3 (**permalink**) 01-19-06, 07:13 PM

Yes, it really is great to utilize and does fall into my KISS philosiphy quite nicely

. If you combine this with colume trends, you could make trades based off just those two technical indicators alone. I love that history always repeats itself pattern wise, and there are so many patterns tied directly to the 50 MA.

Stocktrading101 · #4 (**permalink**) 01-20-06, 02:02 PM

Maybe the NASDAQ will bounce off of this in the next couple trading days! I hope to not see this occurance but with the current trends who knows...