AMZN – How I Trade Using 20 SMA and 50 SMA with 200 SMA
Amazon stock has always been one of my favorites and I use the 200 SMA and the 20 SMA combined with the 50 SMA to help me make trade decisions.
During my entry I look for the best possible scenario that shows me market direction, momentum and probability. I like the Heikin Ashi candles to help see on the charts direction because they illuminates a lot of the noise.
I also use the SPY as a reference that is usually a fraction of a second faster. When the 200 SMA is flat i use it as Support or Resistance and The 20 SMA offer is made real time entry and exit points.
Because when the price is above the 20 SMA with a nice big green candle I enter, and when the price is below the 20 SMA and I see a nice big red candle I go short.
Using these indicators help me with the understanding when the stock is going to bounce at a certain price or in a certain range or area.
Following AMZN through the pre-market morning to draws pre-market highs and premarket lows lines And my Fibonacci lines. The same ritual I do every day.