The 20 Day Moving Average

I am currently on a SELL signal so I am at half position or 1000 shares. I plan to increase share count on the next buy signal to account for the dividends collected and the profit on the last buy signal. I should be able to increase share count by 200 shares. That could increase monthly coupon payment by $20-$48. High yield has pushed back up on the fed interest rate increase.

Notice the chart below and the blue circles. This is price bumping up against the 20 ma. This is why I like the 20 day simple moving average. It gives you a quick visual of the last 1 month of trading.

The rule: If price is above the 20 sma the trend is bullish; if price is below the 20 sma the trend is bearish. So simple…yet so effective. The chart below explains it…apply my rule to the chart see what you think,


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s