Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: B. J. Barron who wrote (3163)	2/19/1999 10:31:00 AM
From: Dr. Stoxx	Read Replies (2) \| Respond to of 39683

BJ, 40MA is considered by many to be the best MA to watch for short-term swing trading. It is 1/5th the length of the 200MA used by long-term investors. Generally speaking, you want to go long above it, and short below it. And it tends to act as support during uptrends and resistance during downtrends. If broken, it will reverse that. Dips down to it are buying opps, and rallies to it are selling opps. Since it is widely followed (along with the 50MA), many traders get active as price nears it, so the price tends to bounce off it. TC.