Moving Averages
Moving Average Respect
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
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, though I may use the 4-week depending on how early the setup is.”
Character Change·Concept