Simple moving average or DMA frequently used in technical analysis showing the average value of a security’s price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.
Stocks trading above its 30,50,150 or 200 DMA are considered as those stocks that are above their resistance and are likely to go up, on the other hand Stocks trading below their 30,50,150 or 200 DMA considered as those stocks that are below their support levels and are likely to come down.
NOTE: This is not only a single factor that should be taken into account while purchasing or selling a stock, it largely depends on the market conditions.
Stocks trading above its 30,50,150 or 200 DMA are considered as those stocks that are above their resistance and are likely to go up, on the other hand Stocks trading below their 30,50,150 or 200 DMA considered as those stocks that are below their support levels and are likely to come down.
NOTE: This is not only a single factor that should be taken into account while purchasing or selling a stock, it largely depends on the market conditions.
