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.

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

20 Sma

50 SMA First 50 SMA Test

Second SMA Test and Failure

“Blue Ice Hole Failure”of 50 SMA

20 SMA Test and Failure

2004

QQQQ

TARGET 200 SMA

QQQQ, DAILY, 2000

50 SMA

200 SMA

DJ-30

500 SMA

2000

1987 Crash

1000 SMA

2 DAY CHART

DJ-30

1973

DJ-30

1956

DJ-30

1946

DJ-30

1929

DJ-30

1929

2 day chart

DJ-30

6 day chart

1929--1933

1920

DJ-30

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

June 6, 2008

50 SMA

500 SMA

200 SMA

WEEKLY 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

50 SMA

200 SMA

500 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

50 SMA First 50 SMA Test

Second SMA Test and Failure

“Blue Ice Hole Failure”of 50 SMA

20 SMA Test and Failure

50 SMA

20 SMA

200 SMA

QQQ

1

2

3

[]AMR WEEKLY

50 SMA

FDX DAILY

50 SMA200 SMA

500 SMA

FDX MONTHLY

50 SMA

Break Down Pattern for the 20 and 50 SMA

20 SMA

50 SMA First 50 SMA Test

Second SMA Test and Failure

Failure”of 20 SMA

20 SMA Test and Failure

YHOO

50 SMA

20 SMA

1

2

3

0

Double “Blue Ice Hole Failure” of 50 SMA

20 SMA

50 SMA

First 50 SMA Test

Second SMA Test and Failure

“ Double Blue Ice Hole Failure”of 50 SMA

20 SMA Test and Failure

80 SMA

50 SMA

DOUBLE FAILURE

500 SMA

200 SMA

20 SMASCH

Break Down Pattern for the 50 SMA

50 SMA

First 50 SMA Test

Second SMA Test and Failure

“Blue Ice Hole Failure”of 50 SMA

Double Top Test and Failure

20 SMA

50SMA

20SMA

BADOUBLE TOP

1

3

2

FAILING THE “BLUE ICE” 50 SMA

SCH

1

2

3

Dragging the 50 Sma Failure Pattern

20 SMA

50 SMA First 50 SMA Test

Multiple 50 SMA Test and Failure New Lows

50 Sma

200 SMA

50 SMA

500 SMA

SBC

Breakout Pattern for the 50 SMA with a 20 SMA test

20 SMA

Second 50 SMA test and penetration

First 50 SMA test and failure

Re-test of 20 SMA support

Breakout from 50 SMA

support

50 SMA

50 SMA

20 SMA

20 SMA breakout

50 SMA

200 SMA

20 Sma20 SMA

SBC

1

2

3

Breakout Pattern for the 50 SMA

20 SMA

Second 50 SMA test and penetration

First 50 SMA test and failure

Re-test of 50 SMA support

Breakout from 50 SMA

support

50 SMA

50 SMA

20 SMA

20 SMA test and failure

200 SMA

50 SMA

500 SMA

Test the 50 SMA

1

2

3

CSX DAILY

50 SMA

Breakout Pattern for the 50 SMA Double test

20 SMA

Second 50 SMA test and penetration

First 50 SMA test and failure

Re-test of 50 SMA support

Breakout from 50 SMA

support

50 SMA

20 SMA

20 SMA test and failure

2nd Re-test of 50 SMA support

200 SMA

50 SMA

50 SMA double

test

DOUBLE TEST 50 SMA

IBM

GMT WEEKLY

500 SMA

50 SMA

200 SMA

GOLD 2 DAY

1000 SMA

50 SMA

200 SMA

Dragging the 50 SMA Breakout Pattern

20 SMA

50 SMA

First 50 SMA Test

Multiple 50 SMA Test and Breakout

New Highs

GTW

DRAGING THE 50 SMA

1

2

3

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