$ACT ｜Daily price above MA200｜MA200 0.01065
Before discussing capital, let's first understand moving averages.
Here, “moving above” or “breaking below” a moving average means the price crossing it. This is not the same as a golden cross or death cross: a golden cross usually means a short-term moving average crossing above a long-term one, such as MA50 crossing above MA200; a death cross is the opposite.
Many people wait for the price to pull back after moving above the average without falling back below it before confirming the move. After a break below, they wait for a rebound that fails to get back above it before treating the break as real.
Indicators can be wrong, so don't skip your stop-loss: deciding in advance what you'll do if your read is wrong matters more than guessing correctly.
Before discussing capital, let's first understand moving averages.
Here, “moving above” or “breaking below” a moving average means the price crossing it. This is not the same as a golden cross or death cross: a golden cross usually means a short-term moving average crossing above a long-term one, such as MA50 crossing above MA200; a death cross is the opposite.
Many people wait for the price to pull back after moving above the average without falling back below it before confirming the move. After a break below, they wait for a rebound that fails to get back above it before treating the break as real.
Indicators can be wrong, so don't skip your stop-loss: deciding in advance what you'll do if your read is wrong matters more than guessing correctly.