Analyzing TRUST using the Moving AverageThe Moving Average is a simple and one of the most popular technical indicator to determine whether to buy, short, daytrade, swing trade, or go long on a stock....It's also used to identify support and resistance. And, it's used to identify a trends (range, uptrend, downtrend) and reversals.
The guideline are asa follows:
If the stock price trends below the moving average, you short the stock or hold off--because the there is a downtrend.
If the stock price is trending above the MA, you buy and hold, because the stock is in an uptrend.
When to enter into the trade or investment: If the share price crosses above the moving average and begins trending upwards, you buy. Conversely, if the share price falls below the moving average, you sell.
Identifying support and resistance: Suppose TRST is trending upward, and then dips, down to the Moving Average line, and continues upwards. This is how MA is used to identify support.
Suppose TRST is trending downwards, and then bounces, up to the Moving Average, and then dips again. This is an indication of resistance
Moving Average for TRST
Various Time Frames
5 Days--$1.13
20 Days- $1.28
50 Days-$1.45
100 Days-$2.14
200 Days-$5.71
1 Year to date $6.12
Swing traders look at 5 day, 20 day, 50 day....Moving Average
Day traders and shorters will look at 5 day, hourly, 30 min, 15 minute, 10 minu, 5 min, 1 min.
After making a low of .99cents yesterday, the falling knife continues fall.
Given how far TRST's share price is below the Moving average, especially the 50 or 100 or 200 day, knowledgabe investors would not buy this stock.
The trading volume is a result of daytrading or shorting.