$AAVE daily close broke below MA200 (109.871), down 2.35% over 24h.
I used to confuse price moving above a moving average with a golden cross. Later, I realized they’re often conflated, but they’re not the same thing: moving above a moving average describes the relationship between the price and the average, while a golden cross describes the relationship between two moving averages, such as MA50 crossing above MA200.
Many people wait for the price to pull back after moving above a moving average without falling back below it before treating the move as confirmed; after a break below, they wait for a rebound that fails to reclaim it.
Don’t change your pace based on a single indicator, and don’t gamble borrowed money on a prediction.
NFA, DYOR.
I used to confuse price moving above a moving average with a golden cross. Later, I realized they’re often conflated, but they’re not the same thing: moving above a moving average describes the relationship between the price and the average, while a golden cross describes the relationship between two moving averages, such as MA50 crossing above MA200.
Many people wait for the price to pull back after moving above a moving average without falling back below it before treating the move as confirmed; after a break below, they wait for a rebound that fails to reclaim it.
Don’t change your pace based on a single indicator, and don’t gamble borrowed money on a prediction.
NFA, DYOR.
