I’m a huge fan of using platforms like StockCharts to help make my investment process more efficient and more effective. The StockCharts scan engine helps me identify stocks that are demonstrating constructive technical configuration based on the shape and relationship of multiple moving averages. Today I’ll share with you one of my favorite scans, called “Moving Averages in Correct Order”, and walk through three charts that highlight the benefits of identifying charts in primary uptrend phases. Primary Uptrends Can Be Defined By Moving Averages This scan, which StockCharts members can access in the Sample Scan Library, basically looks for three criteria to be met for any chart: 20-day EMA > 50-day SMA 50-day SMA > 100-day SMA 100-day SMA > 200-day SMA The general approach here is to find charts where the short-term moving averages are above their longer-term counterparts. By making multiple comparisons, we can ensure a more consistent…
