A way to use moving averages is to use them as dynamic support and resistanceWe like to call it dynamic because it's not like your traditional horizontal suppo resistance lines. They are constantly changing depending on recent price action.There are many traders out there who look at these moving averages as key sup resistance. These traders will buy when price dips and tests the moving averagif price rises and touches the moving average. Watch the blue line as support.
It looks like it held really well! Every time price approached 20 EMA and tested it, it acted as resistance and price bounced back down. Amazing, huh?
One thing you should keep in mind is that these are just like your normal support and resistance lines. This means that price won't always bounce perfectly from the moving average. Sometimes it will go past it a little bit before heading back in the direction of the trend.
There are also times when price will blast past it altogether. What some traders do is that they pop on two moving averages, and only buy or sell once price is in the middle of the space between the two moving averages. You could call this area "the zone".(figure 11) In an uptrend, as with an uptrend-line, the moving average line shows more instances where the average coincided with or acted as, support and in a downtrend, similar to what happens using a down trend-line, there are many instances where the moving average coincided with resistance.
There are some traders who use intraday
This is a histogram were the tail goes to the right, it means the average is larger than the median.
AFC falls since a fixed amount covers a larger portion of the output. The U-shape indicates the areas are experiencing an increase followed by diminishing returns. The ATC curve sums AFC and AVC vertically. The ATC curve falls when the MC curve is below it. The ATC rises when the MC curve is increases. The MC curve intersects the ATC curve at its lowest point.
What do the red lines along the edge represent? What do the blue lines along the edge represent?
high. Like mentioned previously, where there is high demand and ability to supply, the dynamics
The lines would start by going up until it gets to 12 then would begin to bounce around from increase to decrease.
This is because of each seller is setting its price based upon the reaction by the prices its competitor establishes.
The black line is so much more variable than the red line because the black line represents the annual average temperature and the red line represents the 5 year running average temperature.
This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.
““The name of the game, moving money from your clients pocket to your pocket”, Mark stated. “But if you can make your clients money at the same time it’s advantageous to everyone, correct?” “No, Mark replied…Okay, first rule of Wall Street-nobody and I don’t care if you are Warren Buffet or Jimmy Buffet- knows if a stock is going up, down or sideways, least of all stock brokers. But we have to pretend we know.”” (8)
Both the Dow and S&P 500 fell beneath their 50-day moving midpoints surprisingly since April 21. Bank stocks, which outflanked in the post-election rally, were the most exceedingly terrible hit.
Efficient capital market “It was generally believed that securities markets were extremely efficient in reflecting information about the stock market as a whole” (Fama 1970). To extent that when there is new information about stock rise, the news was dispersed immediately and it affects the security 's price at that time.
One can interpret these lines as indicating the direction that a compass needle will point if placed at that position.
The second example is a bar graph, which show descriptive statistics. It is about Facebook’s Company Valuation from December 2010 till August 2011, skipping the months of February and May horizontally and the valuation in billions on the vertical axis starting from $55 to $90, increasing by multiples of five. The month of December has a value of $60B, following with $66.2 in January, $79.2 and $81.6 for March, April has $76.8, $79.2 and $84 for June, July follows with $84, $84, $81.6, and lastly August has $79.2. They used
You want to sell at a time when market conditions are most favourable, but who knows what the future might hold? You want the price to be right – not so high that you put off potential buyers and not so low that you lose out on potential profits. You would like to know how much buyers value your product, but more often than not you must guess at this number. Indeed it is hard to find anyone who is entirely satisfied with their pricing and selling decisions. Even if u succeed in making a sale, you often wonder whether you should have waited for a better order or whether you accepted a price that was too low .Business face even more complex selling