By the end of this video, you will have the concrete steps to immediately start bettering your trades using moving average crossovers. No, these are not embarrassing Suvs, but rather powerful trading setups. For example, how would you like to trade a pattern like this or like this? How about this? Or how would you like to avoid a move like this? Well, you will learn exactly how to do just that in this video. But first, the only thing that I ask in return for all of this crossover information is that you cross over and hit that ravishing like button.

Of course, if you'd like to stay up to date with us, make sure to subscribe as well. Ok, so to start from the bottom, trading is a probability game, and that means that we need elevating factors to stack against our deprecating factor so that we can come out on top over many traits. And a crossover focuses on two of these elevating factors: the blue priced ranked Besame line, and B red directional SMA line. These should be no surprise for anybody who's been keeping up to date with our content Now I'm not going to go into how to set these up, but you can learn how to if you visit our top Indicators for 2020 video which I'll link to below.

However, the goal of these 2 lines is to signify two separate elevating factors that increase the probability of having a good position when we are above the price ranks blue SMA Line: We are in positive price strength territory. When we are below it, we are in negative price break territory. Pretty intuitive and similar with our directional SMA line. When we are above it, we are in an upward direction.

and when we are below it, we are in a downward direction. And as you might expect, being in positive price rank and an upward direction are both strong and separate elevating factors. Whereas the opposite is true if they are negative. And as traders, our goal is to have the highest probability of a winning setup.

And so stacking elevating factors means that were boosting the probability of having a winning position over the long run. And that is bueno, folks. Bueno. So we know that when we have a price strength confirmation, that's an elevating factor, and when we break into an upward direction, that's also an elevating factor.

But what if we break into an upward direction and have positive price strength? Well, that's an even stronger combination, because now we have both elevating factors of having price strength and directional strengths. But here is where it gets interesting. Intra: Sante What about when the price strength and directional strength lines cross over the wonderful cross over. What does this actually signify? Well, it signifies the staying power of upward direction and positive price strength.

But why is that? Charlie Well, that's because it happened after we'd already broken into an upward direction with positive price right and it held enough to cross over. Its signifying that it's had enough strength to both break above, but also to hold above, which are two separate things right. If something breaks above, that's an elevating factor. But if something's holding it, that's an even stronger elevating factor.

To understand why this is important, let's compare and contrast with positions that tend to have a little bit more uncertain price direction, such as this example in AMD. This is an example of one that breaks above and provides elevating factors before quickly duking you out and moving over again and again. This is quite uncertain. We hate uncertainty.

If you decided to buy in upon elevating factors here, you'd be more often caught by uncertain price direction. But if you waited for the crossover, you would have a more affirmed entry point that allows you to ride both the price banks and directional strength. And we love riding price, brakes, and directional strength. But why, why is this actually important? Well, you need to think about this over the long run.

Any position that is going to run up consistently will inevitably have a crossover. That's because you can't go from here to here without our moving averages crossing. but at the same time, just having a crossover that doesn't mean that you're in a good position. You see, while every great position has a crossover, not every crossover results in a great position.

The same thing with confirmations I Always tell people wait for confirmation, but while every good position has a confirmation, not every confirmation results in A good position It's the same thing, right folks. So having the knowledge that every great position will have a crossover, that means that we can use the fact that we have a crossover as a tool to both yield better entry and exit points, but also to reaffirm positions in what we find to be great positions. But Charlie What if the great position runs up after the crossover? It's different because the crossover had happened prior. But on the flip side, if you're looking at your deprecating factors, crossovers can also help you.

If we have a negative crossover, we have a huge deprecating factor. look at: Ford We have these declarations of price we canis and then closing in of directional strength and then boom a crossover and continued beat down. If we see a negative crossover, that's a huge deprecating factor because that means it's holding its commitment to the downside. Okay, but let's put this more into practice.

How do we use this knowledge to better time our entry points? Well, let's take a look at six. So in terms of entry point justification, we like to wait for confirmation. The first confirmation is here, and it comes with upward volume sentiment, which is, of course, an elevating factor, but we are above fair value. We have a recent history of pretty much just selling off to deprecating factors, and really, the testing of price strength with the wicks would also be a turn-off as well.

There's just too much uncertainty here, so at this point we do have a confirmation, but it's not confirming that strong of a position, folks. I'm not saying you wouldn't be justified to take a position here, but it just doesn't have any clear price drivers. what's actually going to move the share price and likewise the next few candlesticks, it reaffirms the statement. It backs that up by trying and trying to get into hold direction, but nine, it just doesn't work.

And ultimately the fight does end in this green candlestick holding direction. And this is where it actually gets interesting. This candlestick signifies the first candle of an upward direction after a period of uncertain. But because we are coming from a period of uncertain, it just doesn't make sense to enter here.

But you know when it does make sense to enter when we have price strength, price, direction, and a reaffirmation of that it cross over. We have this cross over hither and then we get clean running up a tell validation so you can see clearly. You can see clearly now that crossovers can be used to clean up positions. Sure, if you took this position here or here, you technically would have gotten a better entry point for this specific play.

But how many times will it go from uncertain direction like this and then just keep fighting back and forth, locking up your capital or eventually getting beaten down Most of the time, folks. So the point is that we want to catch clean running up and acknowledging these crossovers can be very helpful. but cross aren't entry points themselves and they shouldn't be thought of as entry points. There is a reason that I Say wait for confirmation instead of wait for crossovers.

Okay, but crossovers can also be very powerful for understanding pre-market and after-hours trading and after-hours and pre market. It's often hard to get an accurate analysis on whether or not price action is heading in your direction or not. This is obviously because of the low volume and sporadic movements during this time, and it's just it's so hard to gauge these things in terms of actual elevating factors because things are just so sporadic and this can be immensely dangerous for folks who are taking a swing position. Say you're buying in and Confirmation right here and then you open up into after-hours and all of a sudden we're like, oh, wait, what if we get valid in doubt, what do we do? That's kind of dangerous, right? Because what if all of a sudden the share price turns against you? What if there's a sporadic movement and you get unjustifiably executed out so you need to be able to tell the difference? Say you're taking a position upon confirmation right before close and you're waiting for validation out.

You want to ride price strength, so your big liability now is being unjustifiably validated out. The con of being too cautious is that you could get cut out of a good position, but the other con is that you might have to actually get out due to legitimate crashing. So how do you actually tell the difference when it comes to pre and after-hours trading? Well, the big way is with volume if you have high volume during after-hours or pre market. Obviously, that makes a lot more sense in terms of actually justifying the movement, but for most the time, you're not going to have much semblance of volume.

So how can you stick true to your trading plan to hold through to validation without risking your capital in the event of a non normative market. Our sell-off well, just like we do everything else by stacking your elevating factors. Of course, at close, we have a break into an upper direction, some sporadic executions, and then boom we have a crossover. This means that while we are currently experiencing faradic movement, we also are holding general elevating factors.

so we have a general idea of where the price action itself is actually heading. This is very powerful to us because it allows us to ride the price strength from confirmation and sell out at validation while being reaffirmed and discouraged from selling just because there's a validation in non-market hours. So this is helpful because it helps you justify staying in a swing position that is starting to sell off. It helps you find the overall direction.

It helps you find exactly where you're elevating factors are and how you can avoid the deprecating ones if you do get like a sell-off. Okay, and lastly, let's finish this off with a focus on false crossovers. What does it mean? Oh, we have a false crossover. And how can we actually use false crossovers to help us? so? Much like any elevating factor within the stock market, there's no one factor that always results in a winning position unless of course we're talking about that ravishing like button.

But if you acknowledge that there's no factor that will always result in a winning position, you can keep more of an open mind to figure out exactly what factors are going to make it more likely that you're going to win if you look at Uber. During this period, we have uncertain price brakes on certain price direction and several crossovers. That means in situations like this we have to rely more on our other elevating factors to judge a position. Once we had already failed to accept an upward direction, here, it becomes apparent that we are going to need more sustaining price breaks in order for us to be convinced to take a position.

But even though fake, our crossovers here help us to gauge sentiment. In the sense that the priced ranked line is still overwhelmingly above our directional SMA line. During this time period, it may be uncertain its price. drinks may be uncertain.

but it is leaning bullish in this period and eventually wins. and we have this confirmation and run up to validation so you could see how powerful this is. Anyways, folks, this was a information heavy video I Hope it wasn't too dense in that I Didn't lose anybody if you feel like there's a concept that you didn't understand in this video. I Highly recommend just going back and re watching that segment because the concepts are quite important.

Crossovers can be a very powerful part of your trading success. Anyways, folks, if you have any questions, feel free to reach out to me in the comment section below or join us on our free Facebook group Zip Trader Circle if you're wondering what broker to use to trade. We always like to send beginners over to Weeble and you can join them for free by clicking on the link in the description below. and you will get two free stocks when you both sign up and deposit any amount.

And if you'd like to work closer with me and would like to be a part of our premium course, you can check out Zip Trade review and figure out whether or not it is a good fit for you. Anyways, folks, have a great day and I'll see you in the next video.