Good question! I will look at price in relation to moving averages. But more importantly, I also look at charts in the context of the price pattern. MU is extended above the 50 day. But it’s also forming a very nice consolidation pattern from which to launch. A good trading rule is to buy LESS on shorter price patterns or patterns that price is a distance away from the 50 day. Why? Shorter patterns and extended patterns over 50 can have a higher failure rate. But as you can see, they do work very well.
I hope this helps. Please keep asking questions.
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