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Using moving averages...
Moving averages generally provide support or resistance to the stock price.The two most important averages are 30 DMA and 200 DMA.
If the lesser day moving average for example 30 DMA is above the longer day moving average eg. 200 DMA, it is considered as an uptrend whereas if 200 DMA is above the 30 DMA it is a downtrend.
Moreover , if the stock falls below 200 DMA it is considered the stock is in a correction.
Open the attachment to understand better..
Last edited by cheongtk : 28-05-2008 at 05:46 PM.
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