Looking Beyond the 200 DMA: An ETFdb.com Guide
July 21, 2015 at 15:58 PM EDT
There are thousands of technical indicators used by traders to determine the optimal time and price to buy and sell securities, but the 200-day moving average is arguably the most widely followed by the market. When the market price for a security is trading above the 200-day moving average, traders tend to be bullish on the security, while a price below the moving average is considered to be bearish – a simple snapshot of where a security stands.
