The Power Of Moving Averages

Moving averages are the most effective and simplest TA indicators.

Following are the four moving averages to look at:

8 and 21 ema

8 day ema 

    Very short-term trend

    Strong momentum

21 day ema 

    Short-term trend

    Pullback support during uptrends

If 8 ema is above 21 ema, short-term trend is up.

When price is above 8 & 21 ema, we have trend and momentum.

50 and 200 ema

50 day ema 

    Medium-term trend

    Uptrend defense line to see if  the uptrend will hold during a pullback.

200 day ema 

    Long-term trend

    Bull’s last stand in an uptrend, bears last stand in a downtrend

When 50 ema crosses above 200 ema we have a golden cross, ie general trend is beginning up.

When 50 ema crosses below the 200 ema we have a death cross, general trend is beginning down.

Stocks that are in uptrend find support at the 8/21/50 day.
Stocks in downtrend get rejected at them on bounces.
Below the 200 day is real selling.
If a stock slips below the 50 day and does not rebounce from it - Huston, we have a problem.

8 ema 
If stock is above 8 and 21 day, stock will see higher prices, be aggressive and ride along.
If stock losses 8 day, take profit, sell

21 ema 
Often times, stock find support at the 21 day. If stock rebounds from 21 day, can buy back.
If stock losses 21 day, sell

50 ema 

If stock looses the 8 & 21 day, look at the 50 day.

It is possible for stocks to find support at the 50 day and rebound back up. If stock rebounds from the 50 day, can start to buy back some.
If stock losses 50 day, sell

200 ema 
If stock losses 200 day sell all if you haven't already.
Stocks under the 200 day are technically broken and hard to trust.
Once a stock losses the 200 day, there is no telling how far it can fall.

Do you feel lucky punk?