Crosses to bear in mind
Article Abstract:
Trends in the moving average are often used by technical analysts as indicators. Moving averages smooth prices so that the investor is not distracted by day-to-day fluctuations. A simple moving average totals the closing price for a number of time periods, which is then divided by the number of time periods. The new closing price is added to the total each day and the first day's price is dropped. Buying opportunities occur in a bull market when the price pulls back to support from a 200 day moving average. The use of two moving averages together can help to confirm a trend.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Rectangles worth waiting for
Article Abstract:
Stock prices can be assessed using graphic methods and resistance and support levels are two features noted by technical analysts. Declines are halted by support levels which reflect buying, while resistance involves advances being stalled. The consolidation rectangle can appear when prices meet resistance and then drop to support levels. The price can then move to a further high, after sellers have ceased selling and buyers become more important.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
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