Sunday, February 05, 2006 5:15:51 PM
The 50/200 cross
One type of technical play we will try to fucus on and use to our advantage will be the 50/200 cross. When the 50sma crosses above the 200sma it is called a golden cross. Institutional investors follow this indicator very closely and it is a buy signal for them. This is part of the reason a stock will have upward movement, because the instituitons start buying.
We will use the GRA play as an example
On the short side of things a 50 cross below the 200 is called a death cross, and it is a sell siganl, which could also be used by us a signal to short the stock.
The 100/200 cross is also a good indicator to use but not as reliable as the 50/200.
One type of technical play we will try to fucus on and use to our advantage will be the 50/200 cross. When the 50sma crosses above the 200sma it is called a golden cross. Institutional investors follow this indicator very closely and it is a buy signal for them. This is part of the reason a stock will have upward movement, because the instituitons start buying.
We will use the GRA play as an example
On the short side of things a 50 cross below the 200 is called a death cross, and it is a sell siganl, which could also be used by us a signal to short the stock.
The 100/200 cross is also a good indicator to use but not as reliable as the 50/200.
KRZNATE@
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