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Thread: Moving Average

  1. #11

    Join Date
    Feb 2009
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    415

    Default Re: Moving Average

    I had to convert over to a weekly chart and go back 5 years to find the last timne we had this many stocks abover their 50 Day SMA.

    The 150 & 200 made a big jump today.

    Attachment 122
    Last edited by JTH; 04-17-2009 at 12:22 AM.
    Candlestick crack addict...

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  3. #12

    Join Date
    Feb 2009
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    415

    Default Re: Moving Average

    Sorry, here is a better picture of the daily.

    Candlestick crack addict...

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  5. #13
    alevin Guest
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    Default Re: Moving Average

    Nice charts! Guess I can't do that with free Stock charts version, eh? If I can, haven't figured it out yet.

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  7. #14

    Join Date
    Feb 2009
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    654

    Default Re: Moving Average

    JTH knows how to do things with stockcharts that I just look at slack-jawed! I have the paid version and I don't know how to do those charts either.

    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  9. #15

    Join Date
    Feb 2009
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    415

    Default Re: Moving Average

    Thanks Lady, I had to renew my subscription to Stock charts.com because I missed some of the features and the pretty colors.

    Anyways, here is an updated chart of the S&P 500's stocks above their 50, 150, & 200 Day Simple Moving Average.

    In particular, I'm impressed by the 150 and its ability to pass previous peaks. I'm also watching the 200 which is also sitting at a previous peak.

    I don't use this chart much, I just think it's a neat way to look at the overall health of the S&P 500

    sc.png
    Candlestick crack addict...

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  11. #16

    Join Date
    Feb 2009
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    654

    Default Re: Moving Average

    Great post from John C. Lee this morning. For those of you who read, TSPTalk, please forgive the double post, but I think it is an important one:

    "...I received hundreds of questions/e-mails over the past few weeks on a variety of topics. I think I'm going to cover moving averages. The main question was, "what MA's do you use?". That's simple. I layer all of my long charts with the 15, 20, 50, 100, and 200-day MAs. For shorts, I add the 5 and 10 as well. The MA's for the long-term are the 200-day (primary) and the 100-day (secondary). The intermediate-term MA is the 50-day. Short-term MA's are the 15 and 20-day, and the most important for swing trading.

    The most ideal situation is when the 15 and 20-day both provide underlying support. What's even better is if the 50 and 100-day MA's also provide underlying support. Right now, in the majority of stocks, the 200-day acts as an initial price target for exit. The 200-day MA is the strongest MA out of the ones mentioned. It defines the long-term trend. The COMP is the only MA that is testing the underbelly of the 200-day. Interestingly, the QQQQ is resting above it. Technically, if something is above the 200-day, it is in bullish territory, so keep an eye on tech.

    The MA's also gets rid of headaches and panic attacks. If you know where one of these significant MA's are located, then you know there will be a bounce, at a minimum (in most cases). Conversely, if a stock is approaching a major MA, you know there will likely be a pullback or failure. Besides price, volume, and the basic chart patterns, I've relied primarily on the moving averages to make my trading decisions. I let the MA's make the call. Stop panicking and impulse trading for no good reason. Let the charts make the decision for you."

    http://weeklyta.blogspot.com/

    Lady
    If you think education is expensive, try ignorance. - Derek Bok

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  13. #17

    Join Date
    Feb 2009
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    415

    Default Re: Moving Average

    Quote Originally Posted by XL-entLady View Post
    The MA's also gets rid of headaches and panic attacks. If you know where one of these significant MA's are located, then you know there will be a bounce, at a minimum (in most cases).
    Thanks Lady, and this is why I so love the moving average. Here is nice example this morning.

    A bounce off SLW's 200SMA on the 15 minute chart.

    1.png

    A bounce off SLW's 50SMA on the 60 minute chart.

    2.png

    And just because I think it's neat... The birth of the 200SMA on the weekly chart...

    3.png
    Candlestick crack addict...

  14.  

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