It most likely would be used as to get an indication of where SP would move earlier than say a 200 ema...
It is also pertinent to remember that a moving average, both in type and length of time, will depend greatly on the individual security and how it has reacted in the past. Maybe Rob believes that this has been an effective indicator for this security?
The above explanation can also be used with Stochastics...
Using an ema should be used with other indicators to help ascertain the direction of SP.
I hope someone can better explain this as i am no Robbbbbbb!!!
:)
P
BLY Price at posting:
$3.20 Sentiment: ST Buy Disclosure: Held
