5/20 SMA Crossover for Entries and Exits | Technically Speaking: Trading Stocks & Options
[Music] [Music] welcome everyone to our webcast on technically speaking trading stocks and options i'm connie hill so glad that you would join me here today as we talk about some principles that hopefully will help you with your trading yeah your expertise and just honing your tools here now how many of you struggle a little bit it doesn't have to be a lot but if you struggle a little bit with identifying entries into a potential trade maybe you're not sure of your skills maybe you're not sure if that move that the stock has made above the high of the low day is good enough maybe you're not sure if you've got a trend that actually is bullish there's all sorts of things that you have to contend with and you have to make discretionary decisions well today i'm going to help you solve that potential problem by showing you a system that is really cut and dried very little discretion is going to be needed on your part well we have several folks here we should say hello to you guys are so good coming back week after week and i know some of you are possibly new and if you are go ahead and let us know you'll find we have a really welcoming community here so uh quick shout out to ricardo bill frank john vijay wayne ganesh sherry drummer nade i should say uh giro giroud something like that from north carolina as well as david george texas and rogue dragons writer we also have barb armstrong out in the in the chat she's going to help me out today helping to answer your questions if you have anything go ahead and shout it in and hopefully between barb and myself we'll be able to get you covered get your question answered all right let's go through some disclosures and i'll lay out what we're going to be going through here today do you want you to notice on this front page my twitter handle is actual underscore tda and i will post educational content throughout the day barb is great about posting nice to do's and tips out in her twitter account she's b armstrong underscore tda and if you're not following us as well as the other coaches you're missing out on some great information that comes throughout the day well what we talk about today is intended for educational and informational purposes only it shouldn't be considered investment advice or recommendation of any security strategy or account type options are not suitable to all investors as the specialists inherent to options trading may expose investors to potentially rapid and substantial losses while this webcast discusses technical analysis other approaches including fundamental analysis may assert very different views as performance of any security or strategy does not guarantee future results or success very good let's take a look at our agenda here number one we're going to review our current trades number two we're going to discuss a potential uh system or procedure you might want to follow when you're trying to decide your entries and your exits and we're going to be using a 520 crossover i'll tell you what that is and then of course we're going to do some example trades here well let me come back here for just a moment before we jump over to our thinkorswim and i want to share with you a personal dilemma that somehow relates to having discretion when you're making your decisions on on trades and charts now i have to share it with you i received an early birthday present from one of my sisters bless her heart she gave me 10 pairs and no less than 10 pairs of cat socks okay and so here's one of the pairs of cat socks i've got on black pants today maybe these would be the right cat socks to wear or maybe it's the blue cat socks with the polka dots or maybe it's a more subdued cat sock you know with the gray and the white and and hopefully this parts like inside your shoe and you don't really see it now i could have the same type of dilemma in the sense of i'm not really sure which socks i should wear i've got to use some discretion to make make that decision and it's the same with our entries in detroit sometimes is we have to use that discretion and sometimes when we're in experienced we feel like we could use a little extra help of something just say give me a guess give me a no all right so that's where we're going with that well let's jump over here to our thinkorswim and we're going to start out with one of our trades that we have going on now i have the chart up here but maybe i'll just take you back to where the trade itself exists we had a very short period of time when the market was pulling back a little bit and during that pullback it looked like there was the potential to have some bearish trades and we really hadn't traded many bearish strategies so it's a good opportunity to get a little bit of a feel for this doing some some bearish uh setup traits so we did this one on tjx let me expand it here come on tj let me just kind of flip this for a little bit see there we go and on this trade we did a long put vertical so we prayed paid a debit for it with the expectation that the price of the stock was going to continue to drop now as we come back here on to the charts and we look at them this is the day we got in we got in on this giant slide breaking through resistance at this point giant red candle here i'm just going to kind of zoom in and the trade was working out well for us for quite a long period of time our short leg was 65 so we wanted the stock to drop below 65 and stay there up until options expiration well it did that pretty nicely for a bit and then what did it do it kind of started reversing trends on us all right and it started to come back up here and if you were really trading something like this you would want to monitor it every single day now to be honest i don't monitor my paper trades every single day but if i were an active trader and that were in my account whether it's paper or not you'd want to be you'd want to be watching it right because we here we have five days of some ice upward pressure last week when we met it was just kind of hanging there a little bit and then since then of course it's marched on now the question is do we have any business still being in this trade when instead of taking a partial gain down here or trying to lock in some gains uh we're at a point here we're absolutely in a losing position aren't we we are down about 53 percent on the trade now i have to tell you sorry an inter interrupter here it's actually not my birthday yet okay but i appreciate the congratulations on my birthday i haven't uh turned that you know that page quite yet i have to wait for thanksgiving so that's why i say it was an earth day early birthday present anyway going back to tjx here it's not a lot that we're down about 200 bucks but it is about 53 does it make sense to stay in the trade and lose even more maybe even lose a hundred percent of what we put into the trade well you might think connie would not be such a great idea to do that so let's do something with the trade here to put us in a better position does this look like it is strongly trending bullish now is that what it looks like to you i'm seeing the stock bottomed out i'm seeing a higher high maybe a higher low certainly a higher high through the last few days we've been trading here this week so let's change the trade uh we're going to do another change of polarity trade where we separate this in our case what we have is a long put vertical and what we're going to do is we're going to say all right which one of these is making us money well gee it's this short put here all right we're short three contracts we still have 15 days before it expires so what we're going to consider doing is saying fine you long leg that's going against us we're going to we're just going to close you out and be done with you we're going to have to take a big loss up front we're going to have to take a 792 loss but the expectation is that the stock is quite bullish that isn't the right trade to be in and since we've already made some money here on the top side maybe go ahead and continue through with this short put the short puts that we have now you if we do something like this because we don't have this hedge leg in anymore it may require a little bit more margin in our account than what we had previously so that's going to be one of the considerations is do you have money in your account to do it if not you'd probably just have to trade down the close down the trade altogether wayne says if the data changes change your mind yeah absolutely as opposed to just paint you know just gritting it and you know not burying your teeth i guess but just like gritting and holding on now so that's what we're gonna do keep in mind it might not be something that would work in your account it might not be something you do very frequently we've done it here in the last month a couple of times well one other time but i want you to understand it's not a typical occurrence you can't do it because you're nervous you can't do it just because maybe you know some things you're worried aren't going to work out it's got to be you're convinced the trade is no longer the right trade for you to be in usually that's because of a change in trend now the other consideration which we don't have in this case is if earnings were coming up if i come out here a little bit let's see when earnings are looks like those are the 17th these options expire on the 19th okay so you might say well i'll be out of the trade before they announce earnings in case it goes the other way so that's that's the idea here so let's go ahead we're going to uh buy back i'm going to create a closing order and we're only going to buy the short puts that are 65. that's the only one we're queuing up here going to hit confirm and send and we're out of that part of the trade all right we're going to continue to watch it see how it goes last time when we had a change of polarity it did work out positively for us we were able that stock moved enough that we were able to cover the deficit for the loss that we locked in by selling one of the licks next one we're going to take a look at uh spwr let's go to the monitor tab here spwr we put on last week a stock trade and we put a caller on it because the stock was going to go through earnings so uh i have to point something out to you the positions are split and before we had class i could not remember how to get them together so here's our hundred shares and then down here with our long put and short call they're down here in this area i couldn't figure out how to get them to be neighbors before we started here now let's go to the chart take a look at it the system we got into last week was something called i called it three green arrows on three different studies all right and what we were looking for we were looking for the stock to be above the 30-day moving average we were looking for a max d to be positive and for the stochastic to be positive and we got in on that particular entry signal if you missed it and you missed the information about how to put on a caller and considerations for a caller when we're finished with our session on our post-production work i'm going to put a link in the upper right-hand corner of the screen that goes out to that session so on our spwr here is when we got in and when did they have earnings well yesterday i think it was after the close let's get in here make it show up uh yeah it was after the close and so today is the first day of trading where we're seeing the reaction to that the market like it well it's down a little bit right it gapped down and then it's just kind of been running up today so maybe the market wasn't you know so bad on it but it is down 1.67 percent now let's go check our values of the stock with our caller and remember a caller is where we buy a put and we sell a call to give us some protection in case the stock drops cases not good earnings because if it drops is a long two gonna be profitable yes is a short call going to be profitable yes it should be and that can hop help offset how much your stock is off so here in our stock and this has changed a little bit since early this morning but we are down eight dollars on the stock not a big deal was it more than that earlier yes it certainly was then we'll come down to our caller we've got uh our uh our long put because the stock had gone up and and well it had dropped and the implied volatility came crushing out of our long foot what did that do to the value it diminished the value of the put so we have the implied volatility come crashing out plus this it kind of took over what the stock was or what the put was doing to give us value when the stock dropped and so right now it's down 114 dollars but on the short call we're up 132 dollars so the net of that is about 18 between those two did that help our trade it did did it help it a ton didn't really help it a ton i would say but it gave us the security to hold over earnings and sometimes that's what you do when you want to let your winners run and you've got these long-term positions then you want to put protection if you can want to continue to hold it over earnings so what do we do now should we keep it or should we get rid of it well i'm going to suggest we don't need it anymore all right and if the price of the stock goes up like it's recovering and it looks like it's going to neither of those positions will continue to be profitable for us so we're just going to get rid of it come down here to i don't want to reset i think i clicked that just a hair too or let's see let me get on maybe a better line here create closing order and we are going to do the combo we're going to do both legs it did cost us about 21 cents when we got into the trade we're going to get a little bit of a credit out of it right now and so those will just basically offset each other well we'll come out a teeny bit ahead not a ton we're gonna confirm and send notice there will be commissions because we're doing some options here we're gonna go ahead and just send that off now we're done with our caller now we're only going to focus on our spwr one other thing i want to show you while we're here i want to change the style we're looking at for just a moment and we're going to load up uh i have a couple of these i'm going to choose um let me just choose this one it's not maybe the perfect set because i i really like my bullish candles to be filled in green so it's easier for you to see but i do want you to see it's still above the 30-day moving average here it did get a red arrow on the macd earlier today there was a red arrow on the stochastic since the price of this stock has scooted up a little bit more that red arrow has disappeared so there's a couple of reasons we haven't met an exit condition number one it hasn't closed below the 30 and it hasn't it hasn't a red arrow here on the stochastic we really only have one red arrow here it's very slight and therefore in terms of the rules from that particular entry uh there's no breach there's no exit signal that we would be following based on that hopefully that makes sense to you the other thing that we might want to do here is we'll maybe do this next time or i'll do it offline is put in a stop loss now because the stock has made it through its earnings we used our collar but we still want to have a stop loss in place very good let's look at one more here we're going to look at a stock we've held for since march 30th and let me get a different style here let me get one we're going to use here a little bit i'm going to go back to this and we really don't need that much room all right we got into this trade march 30th we're gonna i'm gonna need even a longer chart just know it's back here it was a co-hold entry the stock had been bullish it closed gave us a close above the high of the low day and that's the entry we took on it well here we are now it's run up really nicely for us it's pulled back it doesn't have a stop loss on but there's something that some of you might look at this and go i recognize that and that is we have a nice bull flag here it's going it up to here up to that little peak at 91 and change and just stay there guy come on all right and then what do we have going on here we have our flag did it break out from that flag formation yesterday yeah it did uh and so what some traders might use if they want to put a skype a stop-loss on pretty tight is they might say well when you get into a trade based on a breakout of a flag typically we'll say we'll put our low below the low of the low day in the pullback so that was just a couple of days ago that low was 83.87 so we're going to put a stop loss here at 80 uh where'd it go 8287. all right 82.87 so let's do it
i want to show you how much rep in the trade too uh we are up in this trade about 72 percent uh making a pretty decent gain on it and that's because we've let our winner run right we let it run up pull back run up pull back run up pull back numerous times since march but the overall trend is staying intact so let's go ahead and let's protect some of those profits we'll create a closing order with a stop and then that number is going to be uh 82 87. we'll make that good till cancel and remember if the stock drops below or 2 82 87 it will trigger a market order that gets you out of the trade immediately if the stock gaps down and maybe it opens up at 80 well we'd want it to trigger and get you out of the trade but just know it may not be at this 82 87 price probably be closer to the place where it gapped down but the intent is to get you out as soon as it is able to get filled for you so we'll hit confirm and send and send this off now i am noticing out in our chat that a survey has been placed and we ask you for your cooperation in these surveys don't do it now we're not finished with our session but you do need to click on the link that's there if you could click on it just kind of let it sit in the background that would be great and then those of you that haven't seen these surveys before they are pretty short you can do it probably in 15 seconds if you're really in a hurry all right three multiple choice questions just fill in the radio button to what corresponds to how you feel and then if you do want to leave some comments we do leave you a couple of fields if you have some comments that you would like if there's certain things you'd like me to touch on in future topics or anything of that nature feel free to put that in there i'll read every one of them our managers read every one of them the feedback we receive from you is great and it helps make our sessions better for you so i'll just solicit your support in that now those are our follow-up stocks now we're going to get into the 520 crossover the the place where you just have an entry or an exit and you're good you don't have to say oh but what is it what about this oh but what about that okay oh what if there's resistance right there no you ignore you ignore it really we're just looking at trend in a continuation of a trend whether it's bullish or bearish now in our case because the market is still pretty bullish making new highs all the time then we would be doing it in a bullish scenario so we've got let's pull a stock up here and we're going to pull up car guru oops i have to spell it right not like garage but like car there we go we have car guru now stock overall we can just see nice and bullish isn't it it's making higher highs higher lows it has earnings next week on tuesday if you are not comfortable getting into a trade when you know when earnings is and say it's in the next week this might be a trade you'd pass on or you'd at least wait and see how do their earnings come out then when you have a signal then possibly get in for our purposes today we're going to go ahead and do it all right but i do want you to know it's not necessarily going to be for everyone now in our system we have two moving averages the first one that red one is a 20-day simple moving average both of them are simple how do you make it some of your just getting acquainted with the charts let's show you come over here to the beaker without words i know somebody's told me it is also a flask so whatever terminology you want to call it and then i'm just going to start typing in simple and just the words of the study i'm looking for so simple moving average i just double clicked on this twice and if it doesn't double click for you just click on add selected the default moving average here is nine so i changed one to twenty and one to five and then i made the lines fatter so they're a little bit easier to see how do you make it fatter when you come up here and you change it to 20 and i just come down here i make it like a three or a four whatever to help you guys see it better and so for yourself whatever is comfortable for you now i'm not going to really keep this one because we don't need it but that is how you would add it to your charts and we'll hit cancel so the 20 period moving average is a shorter term trend it's not as long as an intermediate many times traders will use a 50 and a 20 as an intermediate or a 50 or a 30 i misspoke there for an intermediate trend and a 20 is a little bit shorter term now a five is really shorter term right we're talking the last five trading days and in this system what we're looking for is for the five to cross above the 20. it doesn't matter if there's resistance there it doesn't matter if there's a flag it doesn't matter anything else except that you're following the overall direction of the trend so when it crosses up and above the blue above the red that can be an entry signal that some people might want to use and the opposite is an exit signal so when the blue we haven't well we did have a chance right here when the blue cross down below the red here then that was an exit signal and sometimes we can get whip saws we can see it do that cross and then cross right back again that can be common it is going to be a limitation of using this but it's good to know what the pros and the cons are of anything that we're trading or trying to learn so here i'll zoom in here real tight today we barely got it okay the day's not over maybe it pulls back a little bit we'll have to see but if we're if the market we're going to close right now in the next few minutes we'd say yeah we have a cross sometimes you have to get your mouse here and then you have to look up here at what the actual numbers are all right because it'll tell you what the number is and especially if it's really close so for example the 20 moving average right now is at 34.29 and the five-day moving average is a whole 10 cents higher all right it's at 34.39 but again we're not worrying about all the other things in your technical world that you know about for example you don't care if you could put a fibonacci retracement on it that's really not going to be part of the strategy of just saying cross entry cross exit so we're going to go ahead we're going to put this on it's going to be one of these trades we're going to we're going to track and this one has some decent trading volume that is also not going to be a factor all right now it's nice to note that it's had three days of strong volume but again not a factor as we come over here to the trade tab we're going to just do an entry on the stock i position size this a little bit earlier for our for our account usually i have this showing right front and center all right uh we have a portfolio of about 150 000 we'll risk a half a percent on that which means we don't want to risk more than 750 dollars in any trade now i do want to tell you how to position size this because technically we're not going to put a stop loss on and we need a stop loss to determine what our risk in the trade would be to determine how many shares to buy so if we come out here and we look at this it's hard for us to know when it possibly could cross again so what some people will do is they'll say well what has been a recent low and let's put an alert and let's and let's do our position sizing based on that lower price so as we look here looks like this candle here just a couple of days ago went the lowest looks like that low was 32.68
let's go 32 68 let's give it a little room let's multiply it by 99 to go one percent below there and let's see here i must move my mouse out of the way 3268 times let's get the extra digits let's clear this out again i think that was supposed to be 68 let me just double check 3268 all right and i'm just going to use the little buttons on the calculator times 0.99 i must have done something wrong again 3268 times 0.99 all right 32.35 all right we're going to use 3235 as our position risk so we've got 750 divided by 32 35 to tell us how many shares hopefully my calculator skills will be better this time 32.35 that says we could buy 23 shares now i would have thought we could about more than that but we'll just go with the 23 shares and put it in and then the other thing we're going to do is we're going to put in an alert right here we're going to create an alert uh if it gets out or below 32.35 that was really close there 3235
we're going to create an alert so it let us lets us know hey maybe you might need to go check on this and you don't be surprised if you end up changing your alerts once a week once every seven eight days okay that's how on top of it you want to be because if this stock takes off you want to be increasing your alert so you know about it to possibly lock in gains if if it continues to go up and then if it drops right we're going to wait for a crossover we're not getting it we're going to wait till we see what we need to see before we trade we're not going to trade when we think something's going to happen we're actually going to wait for it to happen all right so let's get our 23 shares again i think that's probably a little low but we're going to go with it we're going to put this in our trading stocks and options class send it off got filled right away now what if you're an option trader what do you do in this kind of situation uh would it be appropriate as we come back to the chart here would it be appropriate to do a spread trade well i'm going to say you could use this entry for any type of trade that you would like but if you do a spread trade your objectives are usually different your objective is like i want it to go above a certain point or i want it to stay below a certain point if we're doing a short call vertical and in this scenario if we're doing a long put or a short put vertical you know ideally we'd want it to stay above a price so i think this type of a system is harder to use with spread strategies i think it's easier to use if you are buying some long options and treating it like a stock just like how we're treating it here so if we come over here to the trade tab we've got some uh november options those are only going to last 15 days so those probably are better to sell than to buy december has 43 days which isn't bad but who knows how long this trade could go on right we saw that trade on ath that we looked at earlier that we've been trading since march letting it and it was not a 520 crossover all right but we were letting it run like it needed to so in this case we want to make sure we're buying enough time so i think december is too short we could consider february we could consider may may does not have a lot of open interest yet so we're not going to go to may we're going to use february here and as i look at this open interest column here this is one of my big deciding factors is how much open interest is there is there even enough here to allow me to to be in the trade really the only strike price that is going to give that to you is the 35s right it's got 288 it's the most contracts here so that is the one that we're going to go with another thing somebody could consider doing if they wanted to although the scenario is different is if you wanted to sell a put azure bullish move you could um but it's going to act differently for you because time decay you're really counting on it and you probably wouldn't go this far say february you wouldn't go that far you'd probably more likely to something like february okay that and that might not give you enough time so we're going to go for the february call we're going to just select here on the price let's try to get it at the midpoint price the spread is i'm going to say a tiny bit large right it is 30 cents i get back up there 370 by 4 so 30 cents there so if we can whittle a little bit of that off that'll help for the trade so let's go ahead we're going to buy it hopefully at that price we're going to put in our trading stocks and options account and we're going to send this off notice because there there are commissions here uh with the contract now because we did not buy much many uh stock trade stock shares here uh we're just going to go with the one contract here but we're going to follow it and the other thing that i like to do is on my charts i like to go and document so i remember when i'm looking through my trades what this was and so i'm just going to put a note that it was a 5 20 crossover let's put co and then i'll remember oh okay yeah that's what i'm doing make sure you pull up this style that has the 520 crossover in it now we're going to take a look at one more stock osw osw it's kind of a small cap stock uh one spa world sounds very enticing i'm gonna zoom in here they have their earnings last night or was it in the morning they had their earnings anyway they had a favorable so it was before the market open so they had a favorable reaction yesterday they continued with more favorable uh price action here and let's see if we even got the cross yesterday i think it might have been a little bit short of it uh looks like oh it's not showing me enough 11.8 is today and 11.2 so we definitely have a crossover today uh here because it's bringing in all this information about earnings it's not showing me those digits so we'll just say it happened recently okay how recent can it happen you get a judge if it barely crosses and you're you know two days after that you might go let's just fairly cross it really hasn't moved that much if you get across and the stock is way out yonder because it had an enormous earnings report or something like that you might go yeah maybe that is too wide of a cross to make up so you just in that sense you you may use a little discretion but by and by large and you're just going to be going possible entry when it crosses up possible entry when it closes then you're not or when it crosses down so that you accept the trade so you're not having to decide every single time well should i or shouldn't i is it good enough is it not good enough okay we just have the cross now in this stock it's a low price stock it doesn't um doesn't have many options like if i open up these uh these november options there really is not a lot of activity going on uh maybe a little bit of activity clear out here but it's not going to reward you all that much so let's go through the same steps here let's see where would we potentially want to put on an alert to let us know it might be crossing we could do the same thing here where we looked at the lowest price and let's see if the lowest this is at 10.66 this one's 10.66 as well
and those seem to be the lowest prices recently what if we were going to do the same thing here where we said take 1046 multiply it by 0.99 to go 1 below that that would put our stop at 1035 and then let's determine the risk here we go current price of the stock 1201 minus 10.35 so a buck 65 of risk so let's divide that into our 750 divided by a buck 65. um now this is saying we could buy 454 shares that is quite a lot isn't it i'm going to just type that number in there except i'm going to type it right 454. uh how many how much money would we be spending if we really bought 454. we bought 454 times 12.
uh we'd only be spending about five thousand dollars out of the 150 000 account does that seem like an extreme position shouldn't right uh should not feel like an extreme position now going through this i realized my mistake and why we had so few shares in our last example looks like a couple of you are typing it into me as well which i appreciate uh jonathan how do you set up an alert when the moving averages cross i'm not sure it's possible that there is a way i don't know if somebody has tried to build a think script for that so that you could put it in the column and see um that's why we're just going to estimate of where we think maybe we need to pay attention since we don't know how to actually set that up yeah so let's finish out here and let's get our 454 shares and we'll go correct our error notice how i'm dragging you down there with me so there's our our 454 shares we're going to send that off we're going to set an alert we decided that would be around 10 35 so let's create an alert let us know when it gets out or below 10 35 and create it so that's where it would be and then if you if the stock moves up and you want to increase your alert great you know it may be you know a few days before you actually move it up but don't ignore it okay don't ignore it even though you look at the chart and you're like oh it hasn't crossed still be proactive about where you need that alert to go now let's come back here and fix the situation our stop loss was going to be at 32.35 and what i needed to do here i'm going to erase the 23. 3235 minus c c r g um let's clear that out so we're going to take uh [Music] 10 30. no we're going to take 32.35 minus the current price of 3506.
35 3506. okay that looks right 265 of risk okay that's where my error was we're going to take 750 divided by 265 to see how many shares we could potentially buy but it's a boatload more than 23. so 750 divided by 265 283 shares is really how many we could buy now since we bought 23 we could go ahead here and just buy 260. let's just buy another 260 shares here make that the way it needs to be 260 shares uh the price is going to be slightly different that's all right i'm going to put it in our class account here and we'll send it off that should get filled pretty quick here now let me just look through comments and questions things we haven't addressed that we need to oh vijay says we can go to create alert in the price drop down select study edit and put the following think script code so somebody has developed something some think script code thank you for sharing that vj i'm going to share that with people also who are watching this as a recording all right so uh let's see here i'm going to copy pretty much what you just said here vj you can go to the create alert how to do it looks like john mcnichol is the one that that created this ability to let the crossovers get you out if you are not here with me in the session i'm going to post this two places i'm going to post it right here and i'm going to post it up here as a text note and hopefully that's whoa there's my 520 crossover i'm just going to try to move it out of the way let's uh activate this move it out of the way there we go uh [Music] i think i need to adjust this just a little bit on the font so that we can actually see it so let's just do an edit properties here instead of a 30 point font let's take it down to 20 and hopefully we'll be able to see all of that in there and let me see if i scoot it all the way over to this side okay we get the whole sentence in there so go ahead make some notes on that if you need to take a screenshot if that will help you great so vijay we appreciate you sharing that with us and i'm gonna go check that out as soon as our class is over and and keep it save that for future reference well i'm hoping you feel more comfortable with this idea of not having to use as much discretion and just being able to have your cross as a potential entry have a cross as a potential exit so pretty much this is what we did after we looked at our trades we spent most of our time on this 520 crossover and did a couple of trades based on that and so what i want you to do just reinforce this is create your own moving crossover if you want to do 520 great if you want to use something else uh feel free to do so and experiment maybe you end up liking six and 18 i don't know all right but there's always different things that you can do and try so test it out yourself in paper money anytime you do something new you want to do it in paper money very good coming up next is going to be trading the trend with mr james boyd i know a lot of you will enjoy that class and like to attend that weekly we did some things in paper money today if you're not very familiar with it or trying to get that way tomorrow afternoon at oh actually today this afternoon at five eastern there will be a class called getting started with think or swim that mike fairbairn will teach and he teaches at a very gentle beginning pace once again i'll encourage you to fill that survey out for me today and barb i appreciate you reposting that in again that information i appreciate your help as well so we wrap up i just need to remind you that what we talked about today was for educational and informational purposes only not in not investment advice or recommendation of any security strategy or account type thanks everyone we'll see you soon and follow up on our trades bye [Music] you