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Victor123
Victor123
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Gauge the strength of the supportresistance level of a stock just using EMA

Say I calculate the 200-day EMA of a stock to be $25. The stock currently trades at $22. I see from the historical price action that it has touched $25 and failed to break it two times in the past 4 months.

Based on this information, is there a way to conclude if the $25 supportresistance is a strong or a weak supportresistance, i.e. what is the probability that the stock will respect the supportresistance this time around?

I understand I can use more technical analysis tools to confirm the supportresistance level, but just based on the EMA, is there any way to predict the strength of the supportresistance level? I heard that if the supportresistance has been tested more than x # of times, it means it is a strong supportresistance. But I also hear that the more times a supportresistance is tested, the weaker it becomes. Any thoughts?

Gauge the strength of the support level of a stock just using EMA

Say I calculate the 200-day EMA of a stock to be $25. The stock currently trades at $22. I see from the historical price action that it has touched $25 and failed to break it two times in the past 4 months.

Based on this information, is there a way to conclude if the $25 support is a strong or a weak support, i.e. what is the probability that the stock will respect the support this time around?

I understand I can use more technical analysis tools to confirm the support level, but just based on the EMA, is there any way to predict the strength of the support level? I heard that if the support has been tested more than x # of times, it means it is a strong support. But I also hear that the more times a support is tested, the weaker it becomes. Any thoughts?

Gauge the strength of the resistance level of a stock just using EMA

Say I calculate the 200-day EMA of a stock to be $25. The stock currently trades at $22. I see from the historical price action that it has touched $25 and failed to break it two times in the past 4 months.

Based on this information, is there a way to conclude if the $25 resistance is a strong or a weak resistance, i.e. what is the probability that the stock will respect the resistance this time around?

I understand I can use more technical analysis tools to confirm the resistance level, but just based on the EMA, is there any way to predict the strength of the resistance level? I heard that if the resistance has been tested more than x # of times, it means it is a strong resistance. But I also hear that the more times a resistance is tested, the weaker it becomes. Any thoughts?

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John Bensin
John Bensin
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Let us say iSay I calculate the 200 day-day EMA of a stock to be at 25 dollars$25. CurrentlyThe stock is tradingcurrently trades at 22 dollars$22. And I see from the historical price action that it has touched 25 dollars$25 and failed to break it 2two times in the past 4 months.

Based on this information, is there a way to conclude if the 25 dollar$25 support is a strong support or a weak supprt?support, i.e whatt. what is the probability that the supportstock will be respected byrespect the stocksupport this tiemtime around?

I understand I can use more technical analysis tools to confirm the support level, but just based on the EMA  , is there any way to predict the strength of the support level? I heard that if the support has been tested more than x # of times  , it means it is a strong support. But iI also hear that the more tiemstimes a support is tested, the weaker it becomes. Any thoughts?

Let us say i calculate the 200 day EMA of a stock to be at 25 dollars. Currently stock is trading at 22 dollars. And I see from historical price action that it has touched 25 dollars and failed to break it 2 times in the past 4 months.

Based on this information, is there a way to conclude if the 25 dollar support is a strong support or a weak supprt? i.e whatt is the probability that the support will be respected by the stock this tiem around?

I understand I can use more technical analysis tools to confirm the support level, but just based on EMA  , is there any way to predict the strength of the support level? I heard that if the support has been tested more than x # of times  , it means it is a strong support. But i also hear that the more tiems a support is tested, the weaker it becomes. Any thoughts?

Say I calculate the 200-day EMA of a stock to be $25. The stock currently trades at $22. I see from the historical price action that it has touched $25 and failed to break it two times in the past 4 months.

Based on this information, is there a way to conclude if the $25 support is a strong or a weak support, i.e. what is the probability that the stock will respect the support this time around?

I understand I can use more technical analysis tools to confirm the support level, but just based on the EMA, is there any way to predict the strength of the support level? I heard that if the support has been tested more than x # of times, it means it is a strong support. But I also hear that the more times a support is tested, the weaker it becomes. Any thoughts?

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Victor123
Victor123
  • 16.1k
  • 38
  • 130
  • 232

Gauge the strength of the support level of a stock just using EMA

Let us say i calculate the 200 day EMA of a stock to be at 25 dollars. Currently stock is trading at 22 dollars. And I see from historical price action that it has touched 25 dollars and failed to break it 2 times in the past 4 months.

Based on this information, is there a way to conclude if the 25 dollar support is a strong support or a weak supprt? i.e whatt is the probability that the support will be respected by the stock this tiem around?

I understand I can use more technical analysis tools to confirm the support level, but just based on EMA , is there any way to predict the strength of the support level? I heard that if the support has been tested more than x # of times , it means it is a strong support. But i also hear that the more tiems a support is tested, the weaker it becomes. Any thoughts?