How to find trend using Moving Average?

[Dollar_McGavin]

I’ll just add one more example here.

I posted these 2 charts on Jan 12th, 2025:

@Dollar_McGavin

S&P500 and Nasdaq100
This can also be seen in the US indices as well. When the drop comes, the foreign capital unwind (see explanation in earlier thread updates) will not be orderly i.e. crash like downside volatility.

The “Average IC declines” price targets in both charts are derived from cycles theory using SMAs.

These targets were hit in both indices as the charts below show. We can expect price to find support soon and make an intermediate term bounce for a run upwards that will last a few weeks. Here’s S&P500:

And here’s Nasdaq100:

The moral of the story is that even the “laggiest” indicator when used properly can not only analyze distinct multiple trends in one chart but can also forecast future price movements. SMAs can also show momentum, divergence and a whole bunch of other stuff but let’s leave that for another time.