Definition
Price is trading above the long-term line, which usually means no immediate deep-value signal is present.
Above 200-Week Moving Average
Understand what to do when a stock is trading above the 200-week moving average.
How to use it
Use this state to maintain watchlists, update quality screens, and avoid forced entries based on short-term noise.
Checklist
- Track distance from 200W to avoid chasing
- Update watchlist quality scores quarterly
- Wait for near-line alerts before heavy research
- Keep dry powder allocation rules documented
FAQ
Should I ignore stocks above the line?
No. Keep them on your watchlist, but avoid forcing entries without your signal criteria.
Can above-line setups still be attractive?
Yes, for momentum workflows. For long-horizon value timing, most investors wait for a tighter approach to 200W.