A simple moving average (SMA), also know as simple-day moving average or simply moving average, is a technical indicator that determines the average of a chosen range of prices, typically the closing prices, by the quantity of periods in that range. For example, the 50 SMA adds up the closing prices of the past 50 days and divides the sum by 50 (days) to make an arithmetical average. From that calculation, the SMA indicator displays a line in the chart that can be used as a support level if price is above it or a resistance level is price is below it. Generally, more that one moving average is used, in order to have a more complete picture analysis of price action during short-, intermediate- and long-term periods. Other moving averages exist, such as the weighted moving average (WMA) and the exponential moving average (EMA).
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr
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