Unlock Trading Secrets: The 45-Degree Rule for Moving Averages

Summary

Discover a powerful trading strategy that predicts market moves before they happen. The key lies in understanding the angle and distance of two crucial moving averages: the 20-period and the 200-period. If these averages are flatter than a 45-degree angle and close together, it signals a tight, flat state, suggesting a potential move is brewing. Traders can even predict where a stock might open by looking at the last pre-market trade, ideally at or near the 200-period moving average. A stock opening near a relatively flat 200-period moving average is a strong signal to add to your "watch me at the open" list. Most importantly, a surge originating from at or near the 200-period moving average, either up or down, is a highly powerful event that can override other potential concerns or trading obstacles.