Newton’s First Law
Every body continues in a state of uniform motion in a straight line, unless it is compelled to change that state by a force impressed upon it.
You may remember this law as “an object in motion, stays in motion.” This means that once the stock price starts to move in one direction, it’s very likely to continue to trend in that direction until something changes the overall bias of the stock movement.
Simple EMA for my Lizard brain
The 200 EMA could be considered the most important trend indicator. Why? Because the stock price is either moving toward it or away from it. It’s a Yin/Yang or love/hate relationship. Therefore, if the stock price is held by the 45 EMA, the stock price will likely continue to move away from the 200 EMA. Read more…