Browse Stacks: Patterns: Pivot Points: $SMH at its 50-day MA

$SMH at its 50-day MA

Why The 50-Day Moving Average Is A Great Technical Indicator. Read full article here:


also stuck between 20 day---one will win, 50 day support for the bulls, 20 day short for the bears. one always wins---i call it the 20-50 trap. where price is trapped between the 20 an 50 day. 6/13/13
Good read....  
I also like what Zee posted .... when price gets stuck between 20 and 50..... It would seem possible to build trades around that idea 6/13/13
Morpheus Trading GroupMorpheus Trading Group
Thanks for the comments. @zee, very good point about what happens when prices are trapped between the 20 and 50-day moving averages, and I agree. 
For me, it's simply a matter of knowing my preferred trading time frame. If, for example, I am a very short-term swing trader, the 20-day moving average may matter more to me. However, if I am more of an intermediate-term trader, I would care more about the level of the 50-day moving average.  
Both are effective, but should be used in unison with one's personal trading timeframe.  
Overall, the longer the period of the moving average, the more weighting that moving average will have...though it may take longer for it to "do its thing." 6/17/13