Not sure what you mean by "not a lot of resistance" as you cited price being below all the MAs. Really, if all the MAs are globbed together above PA that should signal a lot of resistance above and a higher probability for a move lower (in my opinion).
To the other part of your question... when MAs glob up like this it's a sign of a consolidating market with price being stagnant or range bound for a good while. Generally, the longer we consolidate, the more dramatic the breakout. It's much like a bolinger band "pinch". You can think of it as a really large spring and someone compressing it further and further and further. Eventually that person is going to grow tired of compressing it and have to let go. Well, the further that person is able to compress it, the further it's going to fly when relieved.
To the other part of your question... when MAs glob up like this it's a sign of a consolidating market with price being stagnant or range bound for a good while. Generally, the longer we consolidate, the more dramatic the breakout. It's much like a bolinger band "pinch". You can think of it as a really large spring and someone compressing it further and further and further. Eventually that person is going to grow tired of compressing it and have to let go. Well, the further that person is able to compress it, the further it's going to fly when relieved.
DislikedCan someone answer me this question??? When you have on your chart, 15 min, 1 hr, ect, all the SMA's in one position, like it sort-of is right now, with the 21, 50, 100 and 200 all above the PA, is that a good indication that there is not a lot of resistance for the imediate TF? I have seen this and try and follow it, and it seems to me that when that occures, there is a nice move?Ignored
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