Profitable Patterns

found in the Major

Moving Averages
 M.A.P.
MOVING AVERAGE PATTERNS
 MAJOR MOVING AVERAGE RULES

1. There are four major moving averages: 50, 200, 500, 1000.

2. Moving averages act as magnets for price.

3. First contacts with long term moving averages are usually

repulsed.

4. Second and third attempts at crossing major moving

averages are usually successful.

5. Prices that break through a major moving average

usually come back and retest that average.

6. Once a moving average has been penetrated to the upside

it becomes support for positive trends.

7. Once a moving average has been penetrated to the downside

it becomes resistance for negative trends.

8. Stocks in sideways trends often bounce between major

averages.

9. Moving averages and trend-lines often complement each

other.

10. Major moving averages are fractal, for any time period.

11. Major market price gaps are around the major averages.

12. The safest place to buy is on positive moves off of major

moving averages.

13 The safest shorts are on negative moves off of major

averages.

© 2000-2005 WallStreetTeachers.com. All rights reserved.

 M.A.P. Break Down Pattern for the 20 and 50 SMA

20 SMA Test
and Failure
“Blue Ice Hole
Failure”of 50 SMA
20 Sma

50 SMA First 50 SMA Test

Second SMA Test

and Failure
2004
QQQQ

TARGET 200 SMA

QQQQ, DAILY, 2000

50 SMA

200 SMA
 DJ-30
2000

500 SMA
 DJ-30

1987 Crash
2 DAY CHART

1000 SMA
 DJ-30

1973
 DJ-30

1956
 DJ-30

1946
 DJ-30

1929
 DJ-30

2 day chart

1929
 1929--1933

6 day chart
 DJ-30

1920
TODAY'S MARKET
Thursday's market move was a continuation of Wednesday's up
move and our technical call. The DJ closed exactly at the 500 SMA
with today's up side resistance at the daily 50 SMA at 112,683.
A double failure of the DJ at the daily SMA would project the next
market move back down below this weeks lows and April's lows.
QQQQ made a new high for the month and last 3 months.
Q's have held the weekly 50 SMA over the past several weeks.
QQQQ shows 51.00 as our next resistance.

Oil has finally put un a strong rally for THE WAVE 2 retest the last
highs move.
Failure to make new oil highs will give good short signals and long
DUG signals.
On the other hand a new high will also be a top with strong negative
divergence.
DJ-30 WEEKLY 50 SMA

June 6, 2008 200 SMA

500 SMA

50 SMA
DJ-30, 1 MIN
DJ-30, 30 MIN CHART
DJ-30, 60 MIN CHART
DJ-30, 15 MIN CHART
 DJ-30, 1 MIN CHART

500 SMA
50 SMA
200 SMA
QQQQ, 1 MIN. CHART

50 SMA

200 SMA
500 SMA
LONDON FTSE

TARGET 200 SMA

©
 Break Down Pattern for the 20 and 50 SMA

20 SMA Test
and Failure
“Blue Ice Hole
Failure”of 50 SMA

20 SMA

50 SMA
First 50 SMA Test

Second SMA Test

and Failure
QQQ
20 SMA

1
50 SMA 3

200 SMA
 []
AMR WEEKLY

50 SMA
 FDX DAILY

50 SMA
200 SMA

500 SMA
 FDX MONTHLY

50 SMA
 Break Down Pattern for the 20 and 50 SMA

20 SMA Test
and Failure
Failure”of 20 SMA

20 SMA

50 SMA
First 50 SMA Test

Second SMA Test

and Failure
 YHOO
20 SMA
0

50 SMA
1

3
 Double “Blue Ice Hole Failure” of 50 SMA

20 SMA Test
and Failure
Second SMA Test
and Failure

“ Double Blue Ice Hole

20 SMA Failure”of 50 SMA

50 SMA

First 50 SMA Test

80 SMA
 SCH
20 SMA
DOUBLE FAILURE

50 SMA

200 SMA

500 SMA
 Break Down Pattern for the 50 SMA
Double Top Test and Failure

“Blue Ice Hole

Failure”of 50 SMA

20 First 50 SMA Test

SMA
50 SMA
Second SMA Test
and Failure
 BA
DOUBLE TOP
20SMA
2

1
50SMA

3
SCH
FAILING THE “BLUE ICE”
50 SMA

3
 Dragging the 50 Sma Failure Pattern

20 SMA

First 50 SMA Test

50 SMA

Multiple 50 SMA
New Lows
Test and Failure
 SBC

500
SMA

50 Sma
SMA

200 SMA
 Breakout Pattern for the 50 SMA with a 20 SMA test
20
SMA
20 SMA
Breakout
breakout
from 50 SMA
support
First 50 SMA test
and failure 50
20 SMA SMA

50 SMA
Re-test of
20 SMA support
Second 50 SMA test
and penetration
SBC
200 SMA
3

50 SMA
1
20 Sma
SMA

2
 Breakout Pattern for the 50 SMA
20
SMA
20 SMA test
Breakout
and failure
from 50 SMA
support
First 50 SMA test
and failure 50
20 SMA SMA

50
SMA
Re-test of
50 SMA
Second 50 SMA test support
and penetration
 3
500 SMA

200 SMA 1

50 SMA
2

Test the 50 SMA

CSX DAILY

50 SMA
 Breakout Pattern for the 50 SMA Double test
20
SMA
20 SMA test
and failure

First 50 SMA test Breakout

and failure from 50 SMA
support
20
SMA
2nd Re-test of
50 SMA
50 SMA
support
Re-test of
50 SMA
Second 50 SMA test support
and penetration
IBM DOUBLE TEST
50 SMA

50 SMA

50 SMA 200 SMA

double
test
 GMT WEEKLY

500 SMA

200 SMA

50 SMA
 GOLD 2 DAY

1000 SMA
200 SMA

50 SMA
 Dragging the 50 SMA Breakout Pattern

New Highs

First 50 SMA Test

20 SMA

50 SMA Multiple 50 SMA

Test and Breakout
GTW
3

DRAGING THE 50 SMA

2
WallStreetTeachers.com

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