Email of the day
on overextensions relative to the 200-day MA.
“When reviewing deviation from the 200 DMA, what would you say is more relevant - absolute distance or the percentage deviation? Thanks and regards”
Eoin Treacy's view Thank you for this question which may be of interest to other subscribers. I believe that a percentage deviation is more relevant. For example a 50¢ move in silver when the price was near $5 does not have the same psychological impact now that prices are trading closer to $31.