http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=3&dy=0&i=t75561778108&a=108769298&m=o&r=6265.png
Edited by spielchekr, 02 October 2007 - 11:18 AM.
Posted 02 October 2007 - 11:15 AM
Edited by spielchekr, 02 October 2007 - 11:18 AM.
Posted 02 October 2007 - 01:24 PM
Posted 02 October 2007 - 01:51 PM
Edited by borland, 02 October 2007 - 01:54 PM.
Posted 02 October 2007 - 02:55 PM
Posted 02 October 2007 - 03:35 PM
Posted 02 October 2007 - 04:14 PM
Posted 02 October 2007 - 04:28 PM
OK, thanks for the explaination.
I get your point about the 50MA likely to go up. But price going forward can also head down with 50MA going up.
So with the market over extended on a price momentum basis, your not showing a buy the dip sure thing.
Posted 02 October 2007 - 05:14 PM
Here's a very simple way to understand it.
Using the example of a chart set up a chart with 1,50 ma and 50 ma, IF price was to exactly duplicate the moves from 50 days ago, the 50ma line would be a perfect flat line. A positive price deviation from the prices 50 days ago causes a like positive deviation from the current 50ma slope. The mirror image effect happens for negative deviation.