Investing and Trading: Charting 101 - Simple Moving Averages

My Daily Blog is at: http://investorandtrader.blogspot.com/

So, we've been discussing getting into charting lately. We discussed the different types of charts. We discussed the rules and importance of trends

(Those being

1) Trends tend to continue until proven otherwise
2) Trends come in: Uptrends, Downtrends, and corrections.
3) Trends come in a few phases: Accumulation, Public participation, and Excess speculation.
4) There are long term trends, medium term trends, and short term trends. Usually the larger trend wins the fight when they collide, but this depends on what 'phase' the trend is in. (Accumulation, Public participation, or Excess Speculation) )

Now, how to use trends? First you must identify what the trend is for any given time period. To do this? We use moving averages. Today I talk about the easiest moving average - the Simple Moving Average, or SMA

NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and risk tolerance.

Category:

Education

Tags:

• howto
• trade
• invest
• stockmarket
• stocks
• SMA
• commodityfutures
• technicalanalysis
• stockpicks
• daytrade
• simplemovingaverage

[Deziclips]

Is it closing price that you take as price?

[AirelonTrading]

Yes

[MrLaburnum12]

Where can I purchase an Medium term note. My bank doesnt offer them

[AirelonTrading]

Did you check out Treasury Direct?

[Bryanpike72]

I liked this video. You explained a simple movinig average well. I did not know what it was until I saw this video.

[AirelonTrading]

Glad it helped and was understandable! I'll have more when I get back home from vacation, as I'm in Queretaro Mexico at the moment.

[torresut]

Yeah man, you look rough! :)