11/16/2021
What Is a Golden Cross?
A golden cross is a chart pattern in which a relatively short-term moving average crosses above a long-term moving average. The golden cross is a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as the 50-day moving average) or resistance level. As long-term indicators carry more weight, the golden cross indicates a bull market on the horizon and is reinforced by high trading volumes.
according to https://www.investopedia.com/
11/10/2021
Today we want to share a key indicator with you and explain how it helps me identify a potential breakout opportunity.
As you know, one of my favorite setups is the consolidation breakout pattern.
Well, this indicator will often help me identify a potential breakout pattern on a higher time frame.
This indicator on its own, or used with others, helps me identify potential trade opportunities and possible support and resistance levels.
We will also often use the 50-day MA as a potential stop-loss area or profit zone.
The indicator could also identify a reversal and shift in momentum.
First things first, let’s cover the basics.
What is the 50-day Moving Average?
A moving average is the mean of data points over a specific period. For example, the 50-day MA will use 50 data points, whereas the 200-day MA will use 200 data points.
The 50-day MA equals the average price per share that all investors have paid over ten trading weeks.
