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?

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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)

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Ima make it real fucking simple for ya:

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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.

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

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

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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.

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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.

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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.

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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.

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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.

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Best of luck boys.

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