HOUR CHART OF S&P 500
CLICK TO ENLARGE THE CHART
- When price deviates from an important moving average it tries to catch up with the moving average either with a reversal or with a sideways correction.
- Especially when the move down or move up is very swift the opposite move to catch up with the moving average will happen with a reversal.
- This is not a thumb rule but has seen it happen many times in charts.