Carolina Trust Bank (CART) Moving Averages Under the Spotlight

Carolina Trust Bank (CART) are being closely watched by investors as the firm’s Mesa Adaptive Moving Average (MAMA) has moved above the Fractional Adaptive Moving Average (FAMA), indicating that a potential upward move might be forthcoming.  The MESA Adaptive Moving Average, which was developed by John Ehlers, is a technical trend-following indicator which adapts to price movement “based on the rate change of phase as measured by the Hilbert Transform Discriminator”. This method of adaptation features a fast and a slow moving average so that the composite moving average swiftly responds to price changes and holds the average value until the next bar’s close. The author states that because the average’s fallback is slow, trading systems can be created with almost whipsaw-free trades.

Investors may need to sometimes be reminded of the risks involved with stock market investing. Figuring out the individual capacity for risk may involve gauging the possible impact that real losses can have not only on the stock portfolio, but the investor’s mindset as well. Preparing for risk before jumping into the market can help put things in perspective. Investors who wait until holdings suddenly start dropping may be in for quite a shock when things go haywire. Many risk related errors can be addressed with proper calculations up front. Being aware of risk and managing the portfolio accordingly can be a big factor in the long-standing success of the investor.

Traders may be also be focusing in on the ATR or Average True Range indicator when performing stock analysis. At the time of writing, Carolina Trust Bank (CART) has a 14-day ATR of 0.22. The average true range indicator was developed by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.

Currently, the 14-day ADX for Carolina Trust Bank (CART) is sitting at 13.57. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Checking in on some other technical levels, the 14-day RSI is currently at 52.94, the 7-day stands at 54.86, and the 3-day is sitting at 58.91. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Carolina Trust Bank (CART)’s Williams %R presently stands at -37.25. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Taking a closer look from a technical standpoint, Carolina Trust Bank (CART) presently has a 14-day Commodity Channel Index (CCI) of 97.83. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

Successful investors are typically well aware of portfolio holdings at any given time. They tend to regularly review the portfolio to make sure that the combination of stocks is in line with goals and contributing to the outlined strategy. There may be times when everything seems to be in order after a thorough portfolio review. Other times, there may be a few changes that can be made. Maybe there are one or two names that have been over performing providing a big boost to the portfolio. On the other end, there could be a few stocks that are impacting the portfolio in a negative way and they may need to be addressed. Although constant portfolio monitoring may not be overly necessary for longer-term investors, regular portfolio examination is generally considered to be a good idea.

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