Typically, if you are looking to go long and enter a trade for your stock at its major support (50day MA or 200day MA), you would want to see the stock bouncing off the support rather than the price action hugging the support line. If you are looking to act on such setups and the price action is not acting right, you might want to snap a mental time stop on your trade or just scratch the trade and move on. Remember, we can always put a trade back on but losses are hard to make up.
An example of a trade not acting right at significant moving average:
Example of a stock acting right at significant moving average:
An example of a trade not acting right at significant moving average:
Example of a stock acting right at significant moving average:
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