Resistance and Support
An added benefit to MA is that it often strengthens the analysis of trends by providing additional confirmation of resistance or support. These levels are normally associated with price alone, but when price and MA track the same level, the combination indicates continuation of the trend. Until price crosses below both MA lines (in an uptrend) or above both MA lines (in a downtrend), the trend remains in effect.
This does not mean that MA becomes resistance or support. Those levels are strictly marked by current prices. However, the fact that MA might track resistance or support closely confirms the strength of the breadth of trading and makes continuation of the trend more likely than in a situation in which MA does not ...
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