THE SIMPLICITY OF MOVING AVERAGES BY: STACIE SHAPIRO

What is a moving average? A mathematical calculation that smoothes price action into more of a trend indicator Simple versus Exponential Calculation differences Choice depends on time frame – day trade, swing, investment Picking your time frames Again, type of position will dictate your time frames Common simple time frames: 20, 50, 100,150,200 Common exponential: 5,8,13,21,34, How do we use moving averages? To give direction To give signals – some use a cross over method In combination with other methods – **CONFLUENCE**

What to look for with the moving average General direction Where is price in relation to the moving average Price riding moving averages up Price extended from moving averages Moving averages extended from each other Which moving average seem to matter?

C Daily Chart

C 15 Min Short Set Up Confluence of chart pattern and moving averages

TITN DAILY Earnings Gap Play

TITN 15 Minute

AAPL Short Set Up Confluence of chart pattern and moving averages Short the breakdown at 589.3 and can have stop as close as high of previous candle 590.5. Can do a partial cover at 584.4 Confluence of chart pattern and moving averages

CRUS Earnings Gap Play 15 MIN CHART 5 MIN CHART

SPY SHORT May 1, 2012

SPY 15 Min

SODA Pre- market earnings gap

MNST Earnings Gap