 What is going on everybody as Stas here welcome back to another video So in this video, we're going to be talking about moving average crossovers and how you can use these to your advantage to determine the trend of a stock and index and ETF in the future so you can better understand where to get into the position right when to buy when to potentially sell and Really what your plan is going to be with that? Position right so let's just hop right into it This is something that a lot of you probably already know and a lot of you don't know since you did click on To this video. So let's just talk about very briefly to start off this video. What is a moving average? What's an SMA? What's an EMA? Let's just briefly get into that before we do hop into how to determine the trend based on Moving average crossover so to put it in very brief terms guys a moving average is Really a smoothed out trend of what the price action of the stock index ETF or future has been Over a specified period of time, right? So this chart that you're seeing right here You notice three different lines right this light blue line this green line and this yellow line This yellow line is the 180 day simple moving average. All that is it's taking the previous 180 day Closing price of that stock and averaging it out to give you this smoothed out line, right? This 50 SMA or this green line rather is the 50 SMA It's taking the previous 50 closing days price Averaging it out over over this chart so you can get an understanding of the price action, right? And this EMA is the 10-day EMA it's taking the 10 days prior closing price averaging it out And what you need to know is the 10 EMA is the quickest reacting Moving average because it has the smallest data points to work with right the 50 SMA is the second quickest Because it has the second largest amount of data points to work with and the 180 is obviously the slowest because it has the Most data points so all you need to know about that is the more data points your moving average has the slower Reacting it is which is why we use the EMA more for smaller term time frames Usually day trading because again, it's quicker reacting if you're looking at an intraday chart You know if we hop over here on Apple you want to day trade Apple and you want to see okay Is the EMA pointing up pointing down what direction is it heading in that can better? You know help your decision and what you're going to do in terms of that on an intraday Basis right and if you guys want to see a more in-depth video on Indicators and what I use and think or swim just type in the YouTube search bar Stasur fests think or swim indicators I'll probably have a card up here click that after this video if you want to see a more in-depth video I believe that's about a 20-minute video so go check that out, but let's get into it right now What do you need to know in terms of moving average? Crossovers right we need to see or rather there's there's multiple different benefits of seeing crossovers one of them is Determining a bullish potential bullish trend in a stock ETF index or future The other one is the flip side right determining a bearish trend in a stock index ETF or future And this is very simple guys. We're going to look at a couple of different stocks here We're going to look at Apple We're going to look at Tesla and then we're going to look at elf stock ticker symbol ELF So pretty much all you need to know is a bullish trend a bullish sign a bullish moving average crossover is when the 50 simple moving average crosses above the 180-day simple moving average like we see here on Apple at about a hundred and fifty seven dollars per share You know, this is when we saw that crossover and from there the stocks gone up to nearly 205 dollars per share and just to say this here guys It doesn't necessarily have to be the 50 SMA the 180 SMA in terms of a bullish It could be the 40 SMA the 160 SMA All you need to know is the smaller simple moving average the smaller time frame whatever it is What however you guys have it set up when that smaller one crosses above the bigger one? That is a bullish sign right however you guys have it set up when it crosses above That's a bullish sign right but for me I'm using the 50 and the 180 just simply because that's my preference and that is how I have it set up here So we can notice on Apple stock right? We noticed how during this time period of selling off the 50 SMA was acting as a resistance So the first reversal of pattern that we noticed here where we could have entered as a swing trade, right? Was when we started to see higher lows being formed and us breaking out of that 50 SMA Resistance now holding it as a new support and when we saw that bullish cross That would have been the perfect time to enter into Apple right not only were we holding it as a support at this point But once we crossed over we saw that big pop We broke out of the 180 SMA and it's been nice nice push ever since there, right? So that is how you can determine a bullish sign to simply look for the smaller simple moving average in this case Being the 50 crossing above the larger one in this case being the 180 And you can also look at this on many different time frames, right? You can look at it on the one year time frame the 30 day time frame the 20 day time frame Let's just hop into some different time frames so you guys can see what I'm talking about, right? So the 90 day time from here you saw the bullish cross and from there It's been nice and up in terms of Apple right 20 day, you know It's mostly all above here because the bullish cross happened a couple weeks before this 20-day 1-hour chart So it makes sense that the 50s already above the 180 here But if we're hopping into the 10-day, this is where you can see a bit of something different, right? We noticed that Apple was selling off from this point from 202 back down to 196 and at that point the 50 SMA actually crossed below the 180 SMA very briefly Which again is a little bearish sign, but we pop out of there and the next two days after the pop We add a 199 push all the way up to 204 Dollars so that is an example of a bullish You know cross here and what I you know what I typically do and what you guys should be doing Especially if you're new to this is just go through a bunch of different stocks try to analyze them and see Okay, where did the bullish cross occur or is it about to occur for a potential entry, right? So again at this point in time, I was looking at Apple especially when we got that bullish cross I was like, okay This could be the reversal trend to the upside for Apple based on the moving Averages so on the flip side we can also determine a bearish move, right again That's when the 50 SMA is crossing below the 180 SMA and just to put it out there guys again Whatever smaller timeframe SMA you're using if it's crossing below the larger time frame. That's a bearish pattern So let's hop over here to Tesla which has been battered right over the past couple of months so we can see the bearish pattern here So Tesla we all know has been a near $400 stock right from there We saw the big sell-off to $250 and what did the moving averages do here? What did the SMAs do? Well, the 50 SMA crossed below the 180 SMA at about $323 per share in terms of Tesla, right and from there It's been nothing but red since we actually got the reversal and pattern where we actually got a bullish cross here Right we saw the support at about 247 250 ish on Tesla. We popped up this day, right? I'm guessing it was due to earnings We saw the 50 cross above and from there We had a little bit of bullish sentiment in terms of Tesla over the past or really for this period of time for the for this two three month window or actually more like a You know a month and a half window here and what do we notice a bit after that guys We saw the bearish cross when the 50 cross below the 180 and since then we have yet to Recover right so this is really a roller coaster Pattern here or roller coaster stock where you can really use the simple moving averages to your advantage Right you could have profited on the upside here to 380 and then once you noticed how the stock was aggressively selling off You saw the cross you could have sold off there for a profit waited to the cross again And then get in on the cross up here from let's say 306 maybe up to you know 368 you noticed an aggressive sell-off the bearish cross that could have been a signal to sell, right? So now we're seeing that this is still in a bearish pattern, right? So what am I waiting for real time now, right? This is you know, this is the closing day yesterday I'm waiting for the bullish cross on Tesla to potentially get in on one of these big waves to the upside that we've seen in the Past right so now that we're seeing it's in a bearish Formation all we need to see is a pop on you know the 50 above the 180 for it to get to the 280 290 level to get into Tesla on the reversal trend right so that is what I'm looking at here and That's how you can determine bearish signs right when the 50s crossing below the 180 and Bullish signs when the 50s crossing above the 180 and again You can use this on many different time frames guys You can literally use this on the five-day five minute You can see here the 50 crossed above very briefly over these past couple of days when it's been pushing up from the 258 level and since then guys you've seen a nice little bit of bullish move, right? But now it seems like this wants to cross below the 180 so keep an eye this upcoming week You know for Tesla stock and specific are we going to potentially cross this bullish cross here to maybe head back down to the mid 260s, you know, this could potentially happen based off of what the moving averages are doing as of right now So let me just do one more quick example on elf stock ticker symbol ELF This is a makeup company one of the hottest stocks over the past couple of weeks It's literally doubled in price But what we can see here and this is going to be an example of a longer term time frame is on the one year one day We've noticed how elf has gone from $20 down to about $6 per share, right? And now we're noticing a huge reversal in trend, right the elf Candlesticks here are breaking out of the 180 simple moving average resistance and we're noticing This is about to be a bullish cross on elf on the longer term time frame, right? So if this does end up crossing this could be a huge bullish move on elf that can send it up slowly start to send it up Maybe to the 15 level maybe to you know, the $20 level maybe to the $25 level. These are the trend You know trend reversals that we need to be keeping an eye on in terms of these simple moving averages to determine Entry points on stocks, right? If we go here to the 184 hour It already did the bullish cross a couple of weeks ago and take a look at that guys literally from about $8.90 $9 when it did form that bullish cross elf has gone from 930 up to about $13 per share and this is these are honestly just real life examples of Stocks right so that is just something to keep an eye on guys. I'm sure again a lot of you already know this But it doesn't really hurt for me to go over it again and hammer it into your head And if you're new I guarantee you this will help you in terms of swing trading Especially swing trading and some shorter term day trading. So let me know in the comment section down below What are your thoughts on this? I would love to know if you enjoyed this video hit that like button Let's try and get this video to let's say 75 likes let's see if we can get this video to 75 likes I challenge every single one of you out there to get this video to 75 likes and again if you watch the whole video I really do appreciate for all of you guys out there honestly for watching the video. It does mean a lot to me I'll catch you all in the next video. I hope you all enjoy your weekend here and your holiday if you are Celebrating Easter this weekend. I really do hope you enjoy that. I'll catch you all in the next video again Thanks for watching peace out