Proper Moving Average Alignment

I use basically 6 indicators to decide on a trade. While my blog is about trading CEFL..the chart below is good example of a trade that is unfolding…and that I took a position in my long term dividend account.

Notice the blue circles…all are crossing over or giving buy signals. All but 1. Notice the 50 day moving average. It is still sloping down….but the 5 and the 20 have crossed, price is printing above them and they are starting to slope up ever so slightly but still turning up. This is a trade unfolding. If you check previous blog post you will see CEFL did this same print in late November when I got the buy signal.

I don’t like the 50 day moving average sloping down I do like the fact that MACD and TSI are divergent from price…notice both indicators are making higher highs but price hasn’t..I expect price will break to the upside. Either way, the stop on this trade is $53.50 the previous pivot point low.

o1214

 

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