After Hours Buying

[HeartWarrior]

Hi,

A stock closes up, above it's lower moving average, seems to be an indication of upward movement.

1. Is it recommended to buy?
2. Is it okay to buy after hours?
3. What other variables should be analyzed?

I realize I've opened myself up to criticism here. I'm just beginning this learning curve... and have alot to learn about asking these questions. And probably a lifetime to learn about trading. Thanks in advance.

-HW

 

[frelacer]

Generally, I prefer only to buy after hours or pre-market when I am swing trading. That allows me to take advantage of news releases and information or analysis I discover after the market closes. It is also a helpful indicator (to an extent) to get a general idea of where the stock will open. However, I rarely trade in the ECN's when day trading, as it creates increased risk.
When a stock closes above its lower moving average it is a signal that it is time to buy. If you feel unsure of this indicator alone, check volume (if upward momentum is occurring, more than average volume should also occur), Stochastic oscillator, etc. If you believe it necessary to purchase immediately before any other technical analysis research can occur, you can buy after hours at your own discretion.

Some more information on after hours and pre-market trading. Here.