 Hey guys, this is hydro from x-rays and in this video I'm going to be showing how you can use the 10-day weekly moving average to stay in the big monster stocks, right? so Tesla as we all know was a really big winner in 2020 and 2021 and You know we'll study how the 10-day weekly moving average could have been used as a signal to buy and hold on to the stock So typically first of all this rule is very simple, right? It's you When price is above the 10-day moving average That's a bullish sign and that's typically when you want to be buying and in the stock and when price is below the 10-day We see moving average and that's when you want to be When you want to be in cash and not be involved in the stock, right? So we'll take a look at Tesla so and Also before I start it's very important that you use price context Context the stock before you actually make these Decisions right you want to understand if there's downtrend line there or if there's a base forming in the stock, right? You don't want to be randomly buying just cuz stock is above the 10-day or below the 10-day, right? So, yeah, we'll take a look at Tesla here So Tesla was forming a pretty long base here, right? So notice how it topped out Yeah in February and then later in June-July time it finally broke out so So Tesla was above the 10-day moving average Or 10-day weekly moving average up below pulled back cut above and then here it's Consolidating it's tidying up and getting ready for the breakout and when it actually breaks out That's when you want to be buying the 10-day weekly moving average is above or I mean the price is above moving average, so that's Confirmation that it's okay to be long here and it's okay to be Yeah positioned and have exposure in the stock and when you when you're buying Typically, you can use the 10-day moving average also as a way to know what to sell, right? So price gets below moving average you want to sell and when price is above you want to be positioned into the stock So Tesla makes a pretty big move Consolidates here tight ends up it's actually Many flag forming there, right standing up heading up And then makes another breakout move again pulls back to the 10 the 10 weekly moving average Bounces successfully and then here's just a lot of consolidation, right? and Then yeah, but it's holding on to the 10-day right and then this is the first weekly close We're actually closest below that moving average and that's when you want to be selling so if you bought all the way from here to Here that's a hundred twenty percent gain in a pretty short period of time So it's pretty yeah, that's a pretty nice move right and then here it closes below So you want to be selling right but then we read but we reclaim it here And then we notice that we take a context of price action, right? We see a downtrend forming so we want to wait for this downtrend to be broken So that's this is the ball. This is the week that where it happens and on this week Prices again back above that moving average and that's when you want to be buying it, right? It's really that simple. Just look at one prices above the Moving average and when it's breaking like some sort of major resistance and that's a very very obvious buy, right? And yeah, you'll typically find this pattern repeating again and again in the strongest stocks So let's just yeah get back on to Tesla. So then you want to be buying here above moving average then Here's where we finally close below the moving average. So if you bought here That's another 71 percent gain in 90 days. So that's not too bad Okay, next up. We'll take a look at as cute as an example. So as cute This is the 2020 low. This is the code with love. So we Know we pull back really hard We end up bottoming here And then we break out of the space and this is very clearly the buy signal, right? This is the week that you want to be buying and let's say you buy here. It's above the 10 weekly moving average So all is good. It's a This line is basically telling you that Yes, it's prices above you're good to go and you can buy and you buy right and then you just hold till Yeah, you just hold till the closest below the 10 day or 10 weekly moving average So it makes a pretty big move here And forms a mini flag here and breaks out again Makes a pretty big move once again, and then it pulls back in and then it finally gets a close below the average or Leaving average, right? So if you bought over there and you sell over there That is a 79 percent gain in a hundred and thirty three days. So not too bad and Yeah, it ends up reversing the week right after That's unfortunate, but it happens, right? You just have to adapt So you buy again as it reclaims the moving average and then you see that forming a mini flag here three bar player Three bar play so about a very strong week and then consolidation bar, and then it tries to break out here, right? To consolidation bars, and then it tries to break out here and again. Yeah acting very well holding the 10 weekly moving average and then Yeah building another flag here and Then on that week on that week here if I'm closest below But if you bought it back properly, that's so you bought it back over here, and then you sell here That's a 27 percent gain in it yeah, 27 percent gain in 81 days and Yeah, that's not too bad and Typically you want to be selling into extension So you don't always have to wait for the moving average or for price to close below the moving average Sometimes you can sell once the price is getting extended, right? So for example Let me try to find a good example of an extension Yeah, I think that media is a pretty good example here, right? so first of all Let's start from the bottom right Here's the club with low and medium breaks out of the space above that Moving average so on this week. It's a very clear buy and then yeah It just trends up very nicely, right and then close this year So that this is where you would want one. This is where you want to be selling so If you're buying on this week and you're selling over there, this is 62 percent gain pretty solid and Then yeah, we see that Nvidia is consolidating once again, right? It's forming a base here right and then it tries to break out here and then This is the week that you would want to be buying. It's above the 10 weekly moving average So all did here and then it builds a it builds a flag here, right? So here we're building the flag over here And then it continues started over here We actually get pretty close to closing below the 10 week moving average but we end up forming some yeah, we form a hammer and we end up bouncing right and Yeah, we bounce pretty well here and then come back to the 10 We come back to the moving average and then we bounce once more And then we get below here. So that'd be a cell signal. So you would buy Over here and then sell signal over here. So 40 percent again pretty good cane, right and then Here we build a little base, right a little base forming here and then we finally break out and When we're breaking out we're above the moving average. So again, that's a good time to buy Let's say you buy it around this area, right and then here is where it gets extended notice how to notice um How the 10 day weekly moving average has a pretty big gap, right compare the gaps before It's not that wide here It's here. It's a little bit extended but here it's definitely like look at the gap between price and the moving average, right? so over here it's 100% extended and When you have extensions like this and when you have a really quick When when price moves very quickly in one side That's almost always a good time to sell and take some profit or take some profits into a string So yeah, over here, you wouldn't have to wait for the 10 10 You wouldn't have to wait for the price to close below the 10 weekly moving average You could sell it into an extension and lock or try to lock a better profit But worst case let's pretend that you did it. Let's say you sell over here. That's still a 21% gain So again, the strategy works very well. You just have to be aware of um You just have to understand how to do basic technical analysis, right? like many times here price Gets above the 10 Weekly moving average, but you don't want to be buying right you want to be buying when it's breaking out of the base here It tries to do that but fails. So this would be an acceptable buy I just didn't work out but yeah here again you tried to buy and this time it actually works out It gets pretty close to getting it gets pretty close to Closing below the moving average again here, but this time it actually bounces and it works really well, right? so Yeah, this this strategy is really good for a longer term swing place for three or one to three months out type swing place and You can use them for Further out place as well But yeah, you just want to be very careful You want to be sure that you're in stocks that have potential to trend for example in video sq. Tesla like high growth stocks This is typically where it works the best, right? You don't want to be playing value stuff like Like let's just say Walmart Walmart is also not too bad, but Yeah, it's a lot choppier, right? So you don't get a clear signal if there's no clear trend Omar is very choppy well with something like Tesla or sq. You get very nice Right, so you want to be finding stocks that have potential to make nice trends So high growth stocks and focus on those type of stocks for the strategy But yeah, that's pretty much all I got for you guys this week. Yeah. Thank you for listening