By Matt McCallJan 05, 2018
Boy, it’s hard to pick just one! Every chart is different. But if I had to point you to one, I’d go with the moving average. This is a trend-following indicator that is based on past prices and helps determine support and resistance areas. It’s one of my favorite ways to zero in on the strongest opportunities on my screens, as well as identify buy and sell levels.
I will most often focus on the shorter-term 50-day moving average (the stock’s average closing price over the last 50 days) and the longer-term 200-day moving average (over the last 200 days). Both of these give you a good idea of a stock’s true potential and make interpreting a chart a lot easier!
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