50 DMA and Stock Price Support

[safvan]

Hello

This question is related to 50 day moving average (simple) and the corresponding support in the stock prices.

We can note similar behaviour of 50 DMA bounces on 30 minute chart, daily chart and a weekly chart.

For institutional support which time frame makes sense?

I see when you combine price/volume and some 50 DMA line for strong bounces with volume that generally sets up the direction however I am intrigued as to which time frame it works the best.

A bounce happening off 50 DMA on a weekly chart might be a bit late because the same bounce has happened earlier on a daily chart at a discounted price.

thx

 

[MajorDutch]

Hello

This question is related to 50 day moving average (simple) and the corresponding support in the stock prices.

We can note similar behaviour of 50 DMA bounces on 30 minute chart, daily chart and a weekly chart.

For institutional support which time frame makes sense?

I see when you combine price/volume and some 50 DMA line for strong bounces with volume that generally sets up the direction however I am intrigued as to which time frame it works the best.

A bounce happening off 50 DMA on a weekly chart might be a bit late because the same bounce has happened earlier on a daily chart at a discounted price.

thx

I am no authority on the matter but the one institutional trader I know of (oil trader @ IB) does not use MA apart from a 200 DMA which he really just uses as a heads up on confirming whether market is ball park bull/bear.

 

[safvan]

I mean price and volume are lead characters but I often see institutional support coming in at important MA points.

Anyways nevermind.