GrowLife Inc (PHOT)

[trade_stocks_daily]

livinloud10: 50dma=50 day moving average. Sum the price of the stock over 50 days and divide that sum by 50 and you have the 50 dma. This is watched hawkishly as well as the 200 and others depending on your stance.

Basically you want your share price to be above all moving averages and you would like the slopes of the moving averages positive indicating upward movement. When a stockprice approaches a moving average they call this testing the moving average. Well we are testing the 50 dma.

When buy volume is greater than sell volume price will rise. THe 50dma is watched and should it break through that we will see what happens but I am hoping we quickly ascend to 07/09/and 10+.

Slappeds ome web below in case I was not clear:


The 50-day moving average is a popular technical indicator which investors use to analyze price trends. It is simply a security's average closing price over the last 50 days.

How It Works/Example:

You can calculate the 50-day moving average by taking the average of a security's closing price over the last 50 days [(Day 1 + Day 2 + Day 3 + ... + Day 49 + Day 50)/50].

On the surface, it seems as though the higher the 50-day moving average goes, the more bullish the market is (and the lower it goes, the more bearish). In practice, however, the reverse is true. Extremely high readings are a warning that the market may soon reverse to the downside. High readings reveal that traders are far too optimistic. When this occurs, fresh new buyers are often few and far between. Meanwhile, very low readings signify the reverse; the bears are in the ascendancy and a bottom is near. The shorter the moving average, the sooner you'll see a change in the market.

Why It Matters:

The 50-day moving average is perceived to be the dividing line between a stock that is technically healthy and one that is not. Furthermore, the percentage of stocks above their 50-day moving average helps determine the overall health of the market.

Many market traders also use moving averages to determine profitable entry and exit points into specific securities.