You heard of buy low, sell high in the stock market. How do you tell if a stock is selling below its average price?
The average selling price is the sum of the stock price of each day, divided by the number of days. When the price goes below that average, it is below its average selling price.
Where can we find the average? Yahoo Finance at finance.yahoo.com. Let’s look at Starbucks, using the search bar.
We see that Starbucks today is trading at 83.40 a share. Under Statistics, we see that the 50 day moving average is 76.20. The 200 day moving average is 93.61. The stock price is above the 50 day moving average and below the 200 day moving average.
The low is just one data you should look at. Make sure you research your stocks.