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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Talib who wrote (555)	8/25/1998 4:00:00 PM
From: Dr. Stoxx	Respond to of 39683

Thanks for your question, Talib. The 40MA, I have found, is the best indicator of both support (when price is above it) and resistance (when price is below) for the time frame required to trade short-term. A strong bullish market is likely to ride the 40MA when it is in a "cooling off" period, and bounce off it when it is ready to resume the trend. Likewise, a slumping market will often meet resistance there and bounce back down. Long-term investors will find similar results with the 200MA. TC.