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To: GVTucker who wrote (133211)6/17/1999 12:13:00 PM
From: Shadow  Read Replies (1) | Respond to of 176387
 
Whether crossing the 200MDA is myth or not, a lot of people
believe it and act accordingly making the myth reality.
Crossing 200MDA is a significant signal for TA people



To: GVTucker who wrote (133211)6/17/1999 5:27:00 PM
From: mauser96  Respond to of 176387
 
The only reason you often get even a short term blip on crossing the 200 day MA is because people believe in it. To this extent it is a self fulfilling prophecy.
What is so magic about 200 days? It's arbitrary (though roughly a years worth of market open days) and makes no more sense than a 199 or 198 day or 201 or 202 day etc, etc. I never cease to be amazed that people think they can get rich by playing such a simple minded rule.