Replies to post #124408 on Niocorp Developments Ltd (NB)

[PutzMueler]

It’s only a potentially negative, it’s also potentially bullish, if it bounces off the 50.

Negative or just passive, If it keeps going through. But many times investors will wait and then once the 20 and 50 touch the buyers/bulls come roaring back in on a going concern, and trading above the 50 will bring the 20 back around for a wrap-around or bowtie and if it happens quickly that is Bullish to me.

[PutzMueler]

Hey PC, I did some more DD on the reason for using both SMA and EMA averages in a stock chart.
EMA averages put more weight on the recent periods of time and SMA has the same weight placed on every day in the period and averaged over the entire length of the period.
EMA reacts faster than SMA does.

So while SMA is accurate for 20 days and gives an accurate value for the entire term, EMA is preferred by many traders, because the weight given to the most recent closing prices gives a better picture of what is happening in the here and now because more weight is placed on the most recent values.

Therefore 200 and 50 day avr may change slightly over the entire length of time between using either SMA or EMA, traders use EMA on shorter timeframes like 5, 10, and 20 days and are using the EMA to show a realistic what is happening right now. (if that makes sense)

So now I understand this chart a lot better right now and as you can see in the “Here and Now” the 20 and 50 are crossing. Time to react so to speak is Here and Now!

https://stockcharts.com/sc3/ui/?s=NB

JMO (always learning)