Also called: MA respect, respecting the MA, moving average respect, holds the 10-week
When a stock pulls back to a moving average and bounces off it, showing that the MA is acting as support. The MA is relevant when you can see it mattered looking left on the chart. When a moving average that was resistance during a downtrend flips to support, that's the kind of thing I build a trade around because the character of the stock just changed.
On the Chart
Character Change— **APP (AppLovin).** All three pieces of a character change on the weekly chart. 1: Huge volume surge with a strong move showing institutional buying. 2: Higher low after a long downtrend. 3: First moving average respect giving a low-risk entry.
In Context
“New Moving Average Respect**
The stock pulls back and holds a key moving average for the first time, usually the 10-week or 30-week, but it can be the 4-week too depending on how early you're catching it.”
