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Online Share Trading

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Trend Change vs 200 EMA

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Preston
Super Contributor
There is a common misconception, and please correct me if i am wrong. If a share is trading below the 200 EMA,the trading sentiment on the share is bearish, it does not indicate a change in trend. If the price of the share moves below the low of the inital trend price, then it is a change in trend.
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3 REPLIES 3
kwagga
Super Contributor
Fair comment, but let's call this a crystal ball hunch then. I'm just seeing too many blue chips that seems to have run out of steam.
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Rams
Super Contributor
200 EMA,Price and trend are different concepts...trend is as you described it.Price is as Simon always described it. 200 EMA or any EMA uses average price relative to current price to PREDICT a POSSIBLE change in trend. Regarding WHL, it not making lower highs and not making lower lows, so best description will be SIDEWAY and if not trending either way, then in a CORRECTION....on daily.
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Rams
Super Contributor
er, correction, not making lower highs and not making HIGHER lows
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