[MalcolmSm1th]

In the books that I have been reading (the Morales & Kacher ones) they've said something that I fundamentally agree with. And that one is to treat the moving average line as a zone rather than an absolute and definite line.

Let something drift over it and don't worry. If it heads further south the next day then be more concerned about it. In other words let the thing breach the line but if the next day it continues to do so then it's time to get out.

I have always done similar then making trend lines or lines of support or resistance. I purposely get sloppy with I throw those lines onto the page and I don't get hung up with the fact that my line goes through a price line or just misses it. It's a zone thing as M&K say which I have always subscribed to.

An example is one of my stocks that I own was Evraz (EVR.L). That plunged down through the 10MA yesterday and as such I haven't been in a rush to get out as I would have done years ago because yesterday was the first time it fell below the line. It was noticed that it's gone below the line and now today it's recovered (I guess that either peace has broken out in the Ukraine or Abramovitch is selling steel to make Russian tanks) from that drop and rose today to get to what will be this year's high mark.

Hwyl
Malc

Malc