This is a post to remind myself how to stay focused on my Youtube content. I want to post what I want to post, but to help grow my channel, I have to stay consistent to what the Youtube Algorithm states. Now, no one knows …
I start the video discussing the overall market, which had a very bad day the day before the video was recorded. The Dow was down 700 points, the NASDAQ was down 2.5%, and the S&P was also down. I predicted the market downturn in a …
Stock charts are an essential tool for any investor or trader looking to make informed decisions about their investments. There are various types of indicators that traders use to analyze stock charts, and one of the most popular is the moving average. A moving average is a statistical indicator that helps traders identify trends and patterns in a stock’s price movements over time. In this blog post, we will focus on the advantages of using two moving averages on stock charts.
Moving averages are calculated by taking the average price of a stock over a specific time period. The most common types of moving averages are the simple moving average (SMA) and the exponential moving average (EMA). The SMA calculates the average price of a stock over a specific number of periods, while the EMA gives more weight to recent price movements, making it more responsive to current market conditions.
When traders use two moving averages on their stock charts, they are usually looking at the difference between two different time periods. The most popular combination is the 50-day SMA and the 200-day SMA. This combination is widely used by traders and investors because it provides a reliable and straightforward way to identify trends and patterns in the stock market.
Here are some of the advantages of using two moving averages on your stock charts:
Identifying trends: The primary advantage of using two moving averages on your stock charts is that they can help you identify trends in the market. When the short-term moving average (50-day SMA) crosses above the long-term moving average (200-day SMA), it indicates that the stock is in an uptrend. Conversely, when the short-term moving average crosses below the long-term moving average, it indicates that the stock is in a downtrend. Traders can use this information to make informed decisions about when to buy or sell a stock.
Providing support and resistance levels: Another advantage of using two moving averages is that they can provide support and resistance levels for a stock. When a stock is in an uptrend, the short-term moving average (50-day SMA) can provide support levels for the stock. Conversely, when a stock is in a downtrend, the short-term moving average can provide resistance levels for the stock.
Reducing noise: The stock market can be very volatile, and prices can fluctuate rapidly. Using two moving averages on your stock charts can help reduce some of the noise in the market and provide a clearer picture of the overall trend. The longer-term moving average (200-day SMA) helps smooth out some of the short-term fluctuations in the market, providing a clearer signal of the overall trend.
Confirming signals: Using two moving averages can also help confirm trading signals. For example, if a stock’s price crosses above the short-term moving average, it can be a signal to buy. However, if the price also crosses above the long-term moving average, it can provide confirmation that the stock is in an uptrend and increase the likelihood of a successful trade.
Enhancing risk management: Finally, using two moving averages on your stock charts can also help you manage risk more effectively. By identifying the overall trend of a stock, traders can avoid making trades that go against the trend, reducing the likelihood of losses. Additionally, using support and resistance levels provided by the moving averages can help traders set stop-loss orders, limiting their losses in case the market moves against them.
In conclusion, using two moving averages on your stock charts can provide many advantages for traders and investors. By identifying trends, providing support and resistance levels, reducing noise, confirming signals, and enhancing risk management, traders can make more informed decisions about their investments. While there is no guarantee of success in the stock market, using two moving averages can provide traders with a reliable and straightforward tool to analyze stock charts and improve their chances of success.
Today, I am excited to talk about Tesla’s recent performance. The stock has been on fire, and those who were in at the recent lows have seen a 115% increase. However, I have to remind you that Tesla is still in a downtrend and we …
In this video, I discusses Crispr Therapeutics, a stock that has recently gained attention from investors due to its association with Kathy Woods, the CEO of the ARK Innovation Funds. I provide a detailed but quick analysis of the stock, looking at technical indicators and …
In this video, I discusses Zillow’s current stock market performance, using technical analysis to make predictions about its future performance. Zillow is a popular online real estate marketplace that provides information about properties for sale, rent, and mortgage rates. I start by talking about the general stock market conditions, noting that there is still a lot of fear among investors. However, the I believe that there are many stocks that are showing positive signs, and Zillow is one of them.
I first start to look at the Zillow chart on Finviz, which provides a clear picture of Zillow’s stock market performance. I note that the chart shows a bullish trend, with the stock price reaching near all-time lows before starting to move upwards. I believe that this is a good time to invest in Zillow, and they recommend dollar-cost averaging to take advantage of any future price increases.
By looking at my own charts on Thinkorswim, I provide a better technical analysis of Zillow’s stock price. I use the Z stock stochastic oscillator, which is a momentum indicator that measures the relationship between an asset’s closing price and its price range over a given period of time. I show to you that the stochastic is pointing almost straight up, indicating a strong bullish trend. I also draw support and resistance lines on the chart, which shows a clear uptrend.
When I pull up Zillow’s monthly chart, which provides a longer-term view of Zillow’s stock market performance. I note that the downtrend has stopped, and the stock price has started to move upwards. I draw a downtrend line on the chart, which shows that the stock has broken both possible downtrend lines. This is a positive sign, as it indicates a change in direction.
Next, I look at the daily chart, which provides a more detailed view of Zillow’s stock market performance. I draw a higher low on the chart, which is a sign that the uptrend is in effect. By doing this, note that the stock price is struggling to break through the next resistance level, but this is a natural part of the market cycle.
Finally, I look at the weekly chart, which provides a broader view of Zillow’s stock market performance. I show you that the stock price is struggling to break through the next resistance level, but strongly believe that this is just a temporary setback. I do like to remain optimistic about Zillow’s future performance and recommend that investors consult your financial advisors and consider adding Zillow to their portfolio,
In conclusion, my technical analysis of Zillow’s stock market performance shows that the stock is in a bullish trend, and there are many positive signs that indicate a change in direction. While there may be some resistance in the short term, I remain optimistic about Zillow’s long-term prospects and recommends that investors consider adding Zillow to their portfolio. As with any investment, it is important to conduct your own research and consider your own risk tolerance before making any investment decisions.
This video is about AMD stock I start by saying that while I was not bullish on AMD a few weeks ago, it now seems to be advancing like the other semiconductor companies. I then go on to look at some graphs, showing the resistance …
Ok Safemoon Army, this post is for you. I know the recent price action of Safemoon is depressing, so I decided to break down what we are actually getting at todays prices. We literally are getting millions. If you are down with the Safemoon Army …
This trade only seems sane, but it’s crazy when the Nasdaq QQQ stock is up eight straight weeks in a row. It’s still not at the top of the weekly trading channel, that would be the optimum place to short the stock. I just feel that the QQQ will not make it to the top of the range. You ask, What makes me think that? Well, Dre (lol) when we look under the hood of the technicals, they are weak.
The Nasdaq advancing stocks vs declining stocks are weak, the Nasdaq tick chart is weak as well. Those are the two technical that I love to look at. I also looked at the VIX. It is crashing right up against recent support possibly due for a bounce. When you bet against a stock market that just doesn’t want to go down, it seems like your standing in front of a 40 car freight train steaming at you and your only 50ft away. So what did I do?
I sold call credit spreads in front of the market. One that expires this Friday and another one with the strike price a little further out that expires in 31 days. That one has a delta of 20. I usually sell credit spreads further out, but feel it just can go any higher. Well, I take that back. I feel that the 8 week rally needs to slow down. If it does, both of these trades should become a winner. You know Dretrades love sideways action. When you sell credit spreads, you don’t need the stock to go down, you basically just want the stocks to stop going up. With Theta on my side, these options are losing value everyday. Since I sold them, that loss is money in my pocket.
Check out video to see the details of the options trade. I show you what I put on and why I put the trade on. Hope you enjoy. Any questions, hit me up on twitter @dretrades
Amazon stock is setting up to have one of the biggest moves it has ever had as a stock. After being in consolidation for a year, meaning the stock has just been gyrating in a sideways pattern. AMZN stock is finally set to breakout …