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A Secret Trick for Playing the 200 Day Moving Average

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The 200 day moving average is the Grand Daddy of them all.

And if you understand one simple trick, the 200 day can tell you an awful lot about where a stock can go.

In this classic video (note: the Black Room is now the Strategic Day Trader Room), Sami Abusaad explains what gaps around the 200 day moving average mean.

He gives you a simple rule that lets you know if a gap will lead to continuation up or down, or if a reversal could be on tap.

Every time Sami has violated this rule, he's regretted it.

Also learn why “flatness is king” — unlike the 20 day, you do not want a trend in the 200 day moving average.

This is one of those tiny little nuances most traders don't know about — but which can make a big difference in your P&L.

And you can learn it through example from Tesla (TSLA), Vaaalco Energy (EGY), Tellurian (TELL), and more.

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1 comment
Derek DAmour says October 25, 2020

Sami, this was a wonderful short video. It was the first time that I got to hear you, as you were gone the week prior… I just started talking about the 200 period MA more with some of my close traders… I’m going to start watching it immediately and see how it works in the futures world. Thanks for this

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