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Heritage Cannabis Holdings Corp (CSE: CANN)
Heritage Cannabis Holdings Corp looks rather odd on the chart at first glance. Allow me to briefly explain. They were halted for about a couple of months while they officially transformed from a mining company to a marijuana company. Yes, that is quite the transformation indeed. But as you can see the news was clearly well received at you can see the price had jumped exponentially by about five times. In fact I would like to talk about how we can use different types of moving averages to help us understand the chart. I would like to point out that when a price is above a given moving average it is considered to be bullish within the time frame of that moving average at least.
You may recall that moving averages can reflect short time periods or longer ones to help identity shorter or longer term trends. However there are simple moving averages and there are exponential moving averages. OK, time to get out your calculators, the funs about to start. Just joking, I’ll stay true to my word and not give you any math lessons ...for today. A simple moving average is a line plotted on the graph that
represents the average price of the stock over that past defined time period. It’s pretty much that simple. The exponential moving average on the other hand, while similar in nature to the simple moving average will represent a prior time periods price movements using a weighted average, thus giving more emphasis on the most recent prices. Simply put the Exponential moving average reacts faster to the most recent price changes than the simple moving average.
Note: The chart uses OTC: CNNRF - this is the same company