Moving averages are an average of closing prices over a period of time. Many traders try to use them as a dynamic trend line. The price of any security is elastic and will stretch away from the moving average during impulsive moves with the trend and then will snap back to the average when correcting. While most traders focus on the bounce from the moving average, the distance that price moves from the average in an impulse, may offer clues to the strength of the… Continue Reading