Moving Average

You can see the moving averages below. One is a fast moving average set to 13 days (blue) and the other is a slow moving average set to 21 days Green.

Look at the way this graph moves in a downward trend not even coming close to the fast moving average. When it approches teh fast moving average but can't penetrate it day trades enter a position short. This is a basic day trading move.

Look at how the bulls candlesticks break through the moving averages at the end. This could signify a trend reversal. In fact it has already happened.

This is a one minute chart though. Day traders prefer a 5 minute
chart for a more accurate view of the trends.

If you were short from the top you would be looking to get out now if you had not already done so.

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