How To Use The 200 Day Moving Average

The 200 day moving average is another very important moving average because it is observed by almost all traders. Whether a stock is above or below its 200 MA brings great significance. Most traders and investors will rarely touch a stock that is below its 200 MA. Before you continue, do take a read of the article how to use the moving average to analyze stocks if you haven't read it.

The 200 MA As Support

Surprisingly, the 200 MA can act as a very good support. Since this moving average is watched by so many people, it sometimes can be a self fulfilling prophecy. Stocks tend to bounce off the 200 MA.

The 200 MA As Resistance

The 200 MA can also act as a resistance. A stock tends to find it difficult to rise above a declining 200 MA.

The next time you see a stock approaching its 200 MA, take note. You might find it reverse when it hits the 200 MA. Some traders even create trading strategies which employ the 200 MA.

  • If you like this article, consider starting the Stock Market Course. It is free and jam packed with great information for newbies.
  • Want to have updates on the financial markets? Join my Telegram Channel. Dstockmarket.com Channel.
  • Help support this page and press the Facebook Like button below. Thanks!

Recent Articles

  1. Technical Analysis Of DNEX (Dagang Nexchange)

    Feb 13, 19 01:23 PM

    In this page, we will attempt to analyze DNEX using principles of technical analysis. We will be looking at the weekly, daily and 60 min charts.

    Read More

  2. Technical Analysis Of US Stock Market February 2019

    Feb 13, 19 05:59 AM

    An analysis of the US stock market using the principles of technical analysis. What is Dow Jones doing and where will it likely go.

    Read More

  3. Technical Analysis Of VS Industry

    Feb 13, 19 04:52 AM

    In this article, we will analyze what VS Industry is doing through technical analysis. We will also look at what its trend is. Join me on this journey of technical analysis of VS Industry.

    Read More

  4. Technical Analysis Of Supermax

    Feb 12, 19 11:56 AM

    In this article we will use technical analysis to analyze what the price of Supermax is doing and to see what it is telling us.

    Read More

  5. Technical Analysis Of FTSE 100 UK

    Feb 12, 19 06:41 AM

    In this page, we will utilize technical analysis to see what is happening to UK's stock index, FTSE 100 and to see where it is likely to go.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.