Technical Analysis Challenge Day 1 – Moving Averages (MA)
Hi, mooers! Welcome to today's TA-learning. If you learn how to use moving averages, you may be able to identify price trends.
What can you learn from the MA challenge?
● Grasp the logic and benefits of the MA indicator
● Find the best time frame to use moving averages
● Gauge momentum and define support and resistance levels
● Grasp the logic and benefits of the MA indicator
● Find the best time frame to use moving averages
● Gauge momentum and define support and resistance levels
Moving averages are usually calculated to identify the trend direction of a stock or to determine its support and resistance levels. It is a trend-following, or lagging, indicator because it is based on past prices. It's worth mentioning that the time frame is vital to apply the indicator.
1. The commonly-used periods in creating MA lines are 5, 50 and 200 days. The longer the time period for the moving average, the greater the lag. Therefore, a 200-day MA will have a much greater lag than a 5-day MA because it contains prices for the past 200 days.
2. The chart demonstrates how the rising uptrend is formed, and the Moving Averages confirm it. A downtrend is also shown in the chart.
3. A short-term MA on a rising trend falls near or below a longer-term MA. When the short-term MA tops the longer-term MA, a buy signal is released.
From Jan 2020 to Apr 2021, the stock price is moving above the MA. When the stock price suddenly drops, it does not fall below the MA. When the stock price rises again, it indicates that it could be good timing to increase your positions.
4. The long-term MA is relatively flat. When the short-term MA continues to fall, a dead cross point is formed. After that, the trend begins to deteriorate, which could be a signal to sell.
Please click here to learn more about Moving Average (MA) Indicator: What is the MA? from @Moomoo Courses
How to write your post?
Step 1: Select a specific stock
Step 2: Find the MA indicator on moomoo
Step 3: Set a particular period
Step 4: Read the chart
Step 1: Select a specific stock
Step 2: Find the MA indicator on moomoo
Step 3: Set a particular period
Step 4: Read the chart
Did you draw the MA lines successfully? If you did, don't forget to share your results with your fellow mooers. If you didn't, please post your charts and illustrate the difficulties you've encountered to let us know.
For example:
I want to analyze $xxx with MA.
Now I find it on moomoo and set the period to be 60 days.
I want to analyze $xxx with MA.
Now I find it on moomoo and set the period to be 60 days.
The green line below is the price trend. As shown in the chart, the stock price trend is moving above the MA, and the stock price suddenly drops but does not fall below the MA. When the stock price rises again, it could be added to the positions.
The stock price rises sharply in a short period. At this time, the deviation between the stock price and the MA becomes larger. The stock price is likely to move towards the MA, so it could be an opportunity to sell.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Where to post?
Post your learning results by clicking on the discussion:
Technical analysis challenge: How do you identify trends with moving averages?
Post your learning results by clicking on the discussion:
Technical analysis challenge: How do you identify trends with moving averages?
Attention Please:
Mooers who complete all 4 tasks can compete for the $AMC Entertainment (AMC.US)$ stock rewards. Please look forward to the release of the remaining 3 tasks.
For more details, please click: Get to know MA indicators and post your learning results!
Mooers who complete all 4 tasks can compete for the $AMC Entertainment (AMC.US)$ stock rewards. Please look forward to the release of the remaining 3 tasks.
For more details, please click: Get to know MA indicators and post your learning results!
Disclaimer: Moomoo Inc. ("Moomoo") provides an intuitive and powerful technology solution for trading securities. It is not an investment adviser or a broker-dealer and does not provide investments or financial advice nor offer securities for sale. All comments, endorsements, links etc. posted or shared by users of the community are thoughts and opinions of the author and do not necessarily reflect the opinions, views, or positions of Moomoo, its affiliates, or of any employee of Moomoo or its affiliates. Please consult a qualified investment advisor or tax advisor for your personal financial planning and tax situations.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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steady Pom pipi :
Meta Moo OP steady Pom pipi :
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steady Pom pipi steady Pom pipi : Technical Analysis-how to find the Market trend
NANA123 : The most common applications of moving averages are identifying the trending direction and determining support and resistance levels. One can also say that moving averages are used to smoothen out the ‘noise’ of short-term price fluctuations to identify and define significant underlying trends more readily.
NANA123 : When the shorter-term MA crosses above the longer-term MA, it gives a ‘buy’ signal, indicating that the trend is shifting upward. This is what is called a ‘golden cross.’ And when the shorter-term MA crosses below the longer-term MA, it gives a ‘sell’ signal, which is called a ‘dead/death cross.’![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
NANA123 : @bullrider21@Revelations 6@treydongui@OFFICER TRUTH Ask for advice from your TA-traders!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
NANA123 steady Pom pipi : Wow, I look forward to your release. I am in the process of learning indicators, and I will release my learning results later.
steady Pom pipi NANA123 :
jasonbehr87 : but then it's so a speculation isn't it? often times if it does fall, you also won't know how much is the MA gonna fall .you re only able to decide to well if u feel its gonna fall way below but what if, the price starts rising again?
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