It may also be helpful to read our article on a stock's SMA to gain more context before reading the following: Click Here
The Simple Moving Average is a common technical analysis tool used to gauge the strength and direction of trends and to act as potential support or resistance for a moving stock. The period that the SMA represents is directly correlated to which time frame the moving average is best suited for.
SMA Target alerts allow you to monitor when the simple moving average of a certain stock crosses above or below a target value. Stock Alarm currently supports SMAs with the following periods: 5 Day, 10 Day, 20 Day, 30 Day, 50 Day, 100 Day, and 200 Day.
Confirm Support Buys in Channels and Trends: Much like we can use this SMA Target alert to confirm a breakout position, we can use it to confirm an important support level is being held. Just set the SMA Target at the price of support, and once the stock climbs above this level, this could be interpreted as evidence that support is holding.
SMA Price Cross alerts allow you to monitor when the simple moving average of a certain stock crosses above or below the current price of the stock. Stock Alarm currently supports SMAs with the following periods: 5 Day, 10 Day, 20 Day, 30 Day, 50 Day, 100 Day, and 200 Day.
Establish the General Trend of the Stock: When the stock is above its X-Day SMA, it is considered to be “in strength.” Stocks moving above their 5-Day Moving Averages have shown consistent bullish action throughout the last X days of movements on the stock exchange. A X-Day SMA Target alert can help you catch those kinds of stocks while they’re in bullish form.
With Stock Alarm you can set SMA alerts on stocks, etfs, crypto, indices, commodities, and more. When your alert triggers you will receive a notification via push notification, email, phone call, or text message.
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