AcademyacademyMoving Averages as Dynamic Support & Resistance
Moving Averages as Dynamic Support & Resistance
"Unlike horizontal levels, moving averages move with the market. Key ideas Dynamic vs static support Why reactions occur Why reactions fail Dynamic support During established trends, pullbacks sometimes pause near a rising moving average because many traders monitor the same reference. Dynamic resistance In downtrends, rallies may struggle near falling averages for similar reasons. Why they fail A moving average is not a barrier. Strong demand or supply can easily push price through it. Best practice Use moving averages together with market structure, support/resistance, volume and risk management. DStreet Principle Respect reactions around moving averages, but never assume they must hold."
10 mins read Beginner Essential