8 Minute Read

Tackle Today: The 20-day SMA

January 6, 2021

By | No Comments

This is a must-have for short-term traders

We are continuing our brief exploration of moving averages with a look at the popular 20-day simple moving average (SMA). Consider it the go-to benchmark for identifying the short-term trend. The strongest stocks will be rising above it. When prices fall below the 20-day, it’s not necessarily a trend reversal but a weakening of the trend.

Please note where the 20-day sits when analyzing the bull retracement patterns in our weekend Scouting Reports. Occasionally we’ll include an uptrending stock that’s pulled below the 20-day, but it’s not common. Most buy the dip opportunities will find buyers above or at the 20-day. It’s a hot spot for bulls to gather when waiting to join a trend.

It allows them a lower-risk entry on a stock that was recently too high to purchase.

#TeamTackle


Chart of the Day

Caterpillar Breakout

Caterpillar is breaking out on Wednesday.  It has been in a high base pattern, with the 20 SMA trending upward. It was also a candidate on this week’s options report.  Review the full report here: https://tackletrading.com/options-report-january-2nd-2021/


Video of the day

Analyzing DKS as a potential Covered Call

Coach Emily discusses a potential Covered Call trade in Tuesday’s Halftime Report in this video clip.


Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Coaches Show Replay

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Trade Masters 7:00 pm EST

Join us for a special webinar with the coaches where they’ll analyze some trade setups.

Tackle 25 MMG 8:30 pm EST

Join our monthly mastermind group for students of the STEP System.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

# Sign up now for a 15-DAY FREE TRIAL #


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Leave a Reply

Chart Modal

Tackle Trading