The 620 is shorthand for 6 day exponential moving average and 20 day simple moving average on a 5-minute bar chart. It is an intraday trading guide that can help one enter stocks that are pulling back constructively, though a volume dry up pattern where the stock starts to trade in a tight range on lower volume near support is also a good clue that the stock may be setting up to move higher. We have discussed this in some detail in a number of our webinars.
The 620 can also be used on buyable gap ups such as TWLO today. TWLO proceeded to move lower minutes after it gapped higher at the open. One can use an upside crossover of the 6/20 moving averages to enter a position in a BGU. This occurs when the 6 day crosses back above the 20 day. This did not happen, so one could avoid TWLO altogether, as it has closed its gap so is no longer a buyable gap up.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.