You can use the 200 day moving average as a support and resistance area. One thing to remember if the price is near the 200 MA you should wait for confirmation before you decide to hit the buy or sell button. Waiting for the trend direction off the 200 MA will increase your chances of making a profit on the trade. When a moving average lines up with true buyers and or sellers, the moving average will work a high percentage of the time. It is important that you monitor the volume to make sure that the buyers or sellers are actively involved.The price of the stock is also keyed in to the moving averages.Shorter moving averages for daytrading.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Wednesday, January 13, 2016
Tuesday, January 12, 2016
AUD/JPY
Summary : Target Level : 84.1064
Target Period : 2 days
Analysis :
Channel Down has broken through the resistance line at 11-Jan-13:00 2016 GMT. Possible bullish price movement forecast for the next 2 days towards 84.106.
Supporting Indicators :
RSI below 40
Resistance Levels :
( B ) 83.7465Last resistance turning point of Channel Down.
Support Levels
( A ) 80.908Last support turning point of Channel Down.
Target Period : 2 days
Analysis :
Channel Down has broken through the resistance line at 11-Jan-13:00 2016 GMT. Possible bullish price movement forecast for the next 2 days towards 84.106.
Supporting Indicators :
RSI below 40
Resistance Levels :
( B ) 83.7465Last resistance turning point of Channel Down.
Support Levels
( A ) 80.908Last support turning point of Channel Down.
Monday, January 11, 2016
EUR/USD Chart
Summary : Target Level : 1.0971
Target Period : 2 days
Analysis :
Inverse Head and Shoulders has broken through the resistance line at 10-Jan-23:00 2016 GMT. Possible bullish price movement forecast for the next 2 days towards 1.097.
Supporting Indicators :
Upward sloping Moving Average
Resistance Levels :
( B ) 1.094Last resistance turning point of Inverse Head and Shoulders.
Support Levels
( A ) 1.0803Last support turning point of Inverse Head and Shoulders.
Target Period : 2 days
Analysis :
Inverse Head and Shoulders has broken through the resistance line at 10-Jan-23:00 2016 GMT. Possible bullish price movement forecast for the next 2 days towards 1.097.
Supporting Indicators :
Upward sloping Moving Average
Resistance Levels :
( B ) 1.094Last resistance turning point of Inverse Head and Shoulders.
Support Levels
( A ) 1.0803Last support turning point of Inverse Head and Shoulders.
Thursday, January 7, 2016
EUR/CHF Chart
Summary : Target Level : 1.0827
Target Period : 2 days
Analysis :
Triangle identified at 07-Jan-03:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 1.083 within the next 2 days.
Supporting Indicators :
Downward sloping Moving Average
Resistance Levels :
( B ) 1.0868Last resistance turning point of Triangle.
Support Levels
( A ) 1.0827Last support turning point of Triangle.
Target Period : 2 days
Analysis :
Triangle identified at 07-Jan-03:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 1.083 within the next 2 days.
Supporting Indicators :
Downward sloping Moving Average
Resistance Levels :
( B ) 1.0868Last resistance turning point of Triangle.
Support Levels
( A ) 1.0827Last support turning point of Triangle.
Tuesday, January 5, 2016
EUR/GBP Chart
Summary : Target Level : 0.7335
Target Period : 2 days
Analysis :
Channel Up identified at 04-Jan-17:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 0.734 within the next 2 days.
Supporting Indicators :
Downward sloping Moving Average
Resistance Levels :
( B ) 0.7424Last resistance turning point of Channel Up.
Support Levels
( A ) 0.7335Last support turning point of Channel Up.
Target Period : 2 days
Analysis :
Channel Up identified at 04-Jan-17:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 0.734 within the next 2 days.
Supporting Indicators :
Downward sloping Moving Average
Resistance Levels :
( B ) 0.7424Last resistance turning point of Channel Up.
Support Levels
( A ) 0.7335Last support turning point of Channel Up.
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