Trading Strategy Sunday 📈

Moving Average Crossover - Explained

Buckle the fuck up because I'm about to spill the beans on the easiest trading strategy, even your grandma could fucking do it.

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What is a Moving Average Crossover?

A moving average crossover is when the intersection of two different time-period averages of an asset's price are used to signal potential changes in trend direction.

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How To Use Moving Average Crossovers

(Everything said below refers back to the above chart)

Ima make it real fucking simple for ya:

Think of two lines tracking price on a stock chart – one that moves quickly (50-day moving average) and another that takes its time (200-day moving average). When the quicker line goes above or below the slower line, alarm bells should be fucking ringing.

This crossover suggests a potential change in the stock price’s direction.

If the quick line beats the slow one, it could mean the stock is on the rise. That's when you wanna buy in.

On the other hand, if the quick line drops below the slow one, it's a signal that things might be heading south. This is the prompt to either sell or short the stock before the price decreases too much.

But here's the kicker – don't expect instant results. This strategy is more like planting seeds than picking fruit. Give it time. Be patient, and let the investment grow, just like you would with a plant.

Remember, while this strategy is handy, it's not foolproof. Markets can be unpredictable. It's a good idea to mix in other strategies (subscribe for a new one every Sunday) and keep an eye on what's happening in the broader market.

To sum it up, the moving average crossover is a way to spot potential changes in a stock's trend. It's like reading the market's body language, telling you when to join the party or when it's time to sit one out.

Most importantly, TAKE ACTION. It’s pointless just to read this and do nothing. Practise with paper trades. Then make some paper doing it for real.

Best of luck boys.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

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