40 DAY SIMPLE MOVING AVERAGE
One of the most important indicators to use is the 40 day moving average. It will let you know the direction of the trend and also provides entry signals.
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BULL MOVES
In any strong uptrend the market will trade above the 40 day moving average
The 40 day moving average will provide strong support===============================
BEAR MOVES
In any strong down move the market will trade below the 40 day moving average
The 40 day moving average will provide strong resistence==============================
When a market is trending trades back to the 40 day moving average this is always an opportunity to get into the market in the direction of the current trend.
It is almost magical how the market trades off the 40 day moving average and if you follow this indicator I think you will agree.
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40 DAY SIMPLE MOVING AVERAGE
To be bullish a stock should be above the 40 day simple moving average and the moving average should be trending up.
To be bearish a stock should be trading below the 40 day simple moving average and the moving average should be trending down.
A trading range market will see the 40 day simple moving average moving sideways and the stock price going back and forth.
The 40 day moving average is a powerful support and resistence line when a stock is trending.
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