what's up YouTube this is Ryan Hildreth
and today I'm going to show you how to
use simple moving averages to find
optimal entry points into the stock
you're trying to purchase in the last
video I talked about the two technical
indicators that I'm going over which is
obviously today simple moving averages
wanted to give you more of a hands-on
experience because it's hard to learn
this stuff if you don't if you don't
know what you're doing
I was there three four years ago I
didn't know what the heck I was doing
and I had to watch read a bunch of books
watch a bunch of videos but I'm gonna
make it simple today today we're using
options house so what I did was in the
last video be the example I used was
Disney so I typed in D is right right
here in the left hand corner into my
search bar typed in the ticker symbol D
is Walt Disney came up okay and then as
we can see here this is a five-year
chart of Disney looking at it it looks
great for a long term investment this is
what you want to see the chart is just
upward trending as you can see okay well
2008 obviously most the stock market did
come down but ever since then we've been
on the up-and-up so with a long term
investment we want to find companies
with a beautiful chart like this upward
trending so we're gonna go to the I'm
gonna put it back to the 5-year which
gives you a five-year timeframe of
prices okay and then I'm gonna go to one
week which gives you a little bit more
candlesticks
so each candlestick is the green ones
that means that the stock finished up on
that particular day and the red ones
mean that the stock
lower on that particular day so we're
gonna use simple moving averages we're
gonna go up here to studies and we're
gonna go select might be different in
your account you're using e trade or
trade King or something different
this is options house but it's gonna be
easy to find I just wanted to show you
which so we're gonna go to moving
average ad as you can see the period is
15 so that's a 15 day moving average
simple moving averages average out the
clothes the clothes of the price for
that period so like for 15 days in a row
they averaged out the closing price of
Disney we want to change that let's
change it to a 200 because we want the
200-day simple moving average we're
gonna make that blue okay
save boom there's the 200-day moving
average as you can see the Disney really
hasn't even gone below the simple moving
average up until recent where it touched
it and then shot right back up and
that's funny because I actually
purchased Disney down here when this
simple move when it was close to the
200-day simple moving average so that's
actually my biggest long-term winner
this year I'm up 13% Disney so let's
also let's go to let's add another
moving average and we're gonna go we're
gonna go with a 50-day okay let's see
how that works out oh I don't know why
it
made it blue let's make it yellow or
we'll make it red how about that so we
can see okay so look at the 50-day
moving average the red line as you can
see over the past the past five years
every time that the stock touches the
the red line the 50-day simple moving
average kind of bounces off it right up
until we get over here where it gets
kind of messy it crosses it crosses it
extreme then bounces back up comes down
really extreme and kind of is just
hovering around the 50-day moving
average this is not an indicator that
we're using to determine okay this is
this is the stock I'm buying it because
you know the simple moving average says
so no we we chose this stock because it
had good fundamentals for our long-term
strategy right with the p/e ratio the
dividend yield really high dividend
yield and dividend growth so the simple
moving average just gives us a nice
outline of like where the optimal price
points are so if we go to the one-year
and we will also go one day let me just
see where the the stock is kind of you
know hovering around the simple moving
average right here as you can see down
here this the stock was way below the
simple moving average we could have said
you know what it's below the 200 and the
50-day simple moving average I think I'm
gonna buy this stock I really like the
fundamentals it's below the technical
indicators that Ryan taught me about I'm
gonna I'm gonna go with this stock I'm
gonna purchase right here and look if
you would have purchased somewhere
within this range of 90 to 94 I
we got it at 92 88 you know you would
have made I mean I'm up 13% this year
the stock is now at 106 okay
so just with the simple moving averages
it's just an indicator that kind of can
give you a nice entry point to the stock
it's not the end-all be-all it's very
simple very basic investment strategy
but I just use it as a you know just
kind of a guideline just kind of a
guideline that gives me a nice entry
point but in the next video we'll talk
about the volatility index which is the
most important indicator of all time in
my opinion because it's worked so well
for me in all my strategies my long-term
investments and my shorter term trading
investments so in the next video I'll
show you that but if you have any
questions about simple moving averages
contact me at Ryan Hildreth rh at
gmail.com look forward to hearing from
you
take care
#Best Education Page #Online Earning
online earning,make money online, earn money online, online earning, online earning sites,
make money online free, online money income, earn money online free, money online, best way to earn money online, online income site, money earning websites, best online earning sites, easiest way to earn money online, earn money payment bkash, online money income site
Posts
No comments:
Post a Comment