CANNAINVESTOR Magazine U.S. Publicly Traded December 2017 | Page 210

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Let’s get started by looking back at one of our sugar coated chart setups we covered last issue on SugarMade Inc. and how that has panned out plus some additional ways to look at it. If you recall, we had previously discussed how you could use multiple moving averages as they crossed over as signals to buy or sell. For more details flip back to our prior month's issue. If you had followed this strategy using the 9 and 4 day averages we referenced in our examples you would have entered a position around the green circled area on the chart and sold around the red circled area. In this case you would have more than doubled you initial investment in just over a month’s time. Now that is some sweet sugar.

I would like to sprinkle some more sugar on this chart now and introduce to you ATR (Average True Range). The ATR has some math behind its meaning, but I won’t bore you with those details and will just give you the icing on the cake details you really need to know. The ATR can be thought of as measurement of price volatility. When you notice that the ATR is increasing that means the prices are more volatile. When this happens you should be on the watch of the direction of the price to rise or increase. Note that an increasing ATR could represent increasing or decreasing prices as indicated in the chart. The ATR increasing can be used as a sign of changes to come (bullish or bearish). Adding the ATR indicator to your toolbelt can help you identify and prepare for upcoming price movements and keep your gains on a sugar high

SugarMade Inc.

(OTC: SGMD)