Canadian CANNAINVESTOR Magazine December 2018 | Page 240

Cronos Group Inc. (TSX: CRON)

Cronos Group is becoming more widely known company in the cannabis space now. Their company values are stated as follows: “We never lose sight of our consumers trust as a measure of our success, building an iconic portfolio that offers the most enjoyable products on the market while generating value for our shareholders.” We should look to borrow from Cronos values and state that we as investors should never lose sight of the overall trend within the cannabis space and find ways of capturing value within our portfolios. Perhaps today, more so than ever it is best to capture what the trend is without factoring in all of the noise. We have been seeing plenty of volatility in the market recently so we will need to add a new tool to our belt to help us capture the bigger picture, but not be left out on trend changes as they occur.

Note: The chart uses NASD: CRON - same company

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Presenting the Kaufman adaptive moving average hereby referred to as KAMA. Are you finding there is simply too much market noise and volatility in the charts you are looking at? Does it make it more difficult to spot the overall trend? KAMA is of assistance to us here. Similar in nature to a moving average it will represent the average of the stocks trading prices, however, it is calculated different and reacts differently when there is market noise. We won’t bore you with the details of how this is done and keep it at a high level.