I think it pretty much depends on how long it will take monthly EMA40 to go up... In the past the closing price has touched monthly EMA40 a few times...
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I think it pretty much depends on how long it will take monthly EMA40 to go up... In the past the closing price has touched monthly EMA40 a few times...
Yes, it is funny/interesting how price often goes sideways and consolidates for a period just long enough until technical moving averages catch up before going higher again.
The whole point of averaging is that there is always a middle point...
Moving averages discard values that have non-significant effect in the change of equilibrium value.
Different types of moving averages just weigh older and newer value points in different ways, but the basic idea is the same.
Reversion to the mean...
I have never been real fan of the technical terms... Maybe it has a lot to do with me using so many languages every day...