TA question to gurus

[#1]

A big div. like TKG's can have great impact on LDT, ie breach 40 day MA, which TKG did. Is his a valid break? How do you adjust/interpret chart?

[SimonPB]

pp, always an issue and certainly it has been discussed here before. On large divs like TKG I just ignore the chart for a while until things settle. Others will suggest that you remove the div from the chart for a pure picture, but I disagree. The issue then is when do you return the div.

[john_1]

pp a moving average is exactly that an average. A breach just means it is returning to its norm and should not be ignored but incouraged I would not trade off a moving average as a trigger and certanly not one of 40 days.