doc,
<< take a look at the 5,10,20,50,100,200 day moving averages. try other stocks. take cmgi, today for example. bounced hard off its 100 dma. it used to amaze me how a stock would bounce off a certain number. i thought it was magic. if you're looking to buy, it works great in situations like today. >>
Thank you for the help. Maybe you would be willing to lay it out a little more explicitly. Obviously I don't know the first thing about reading the chart. If the stock is at an all-time high, I'm guessing that TA would not recommend a purchase. If a stock is off its high but above its 5 dma, do you wait for the price to approach it, or do you wait for the 10 dma? How often would the price retrace to the 200 dma if the stock has been trending up primarily? Do you have to learn a stock before you decide which moving average to wait for?
As always, I can come up with a million questions. Feel free to pass on most or all of them.
Greg |
