#TradeStories #StrategyTrade

🔥 MOVING AVERAGES STRATEGY IN STOCK TRADING

For this trade, I used the Moving Averages strategy, specifically the combination of the 50-day and 200-day simple moving averages (SMA). My strategy was based on identifying a Golden Cross, which occurs when the 50-day SMA crosses above the 200-day SMA, signaling a potential long-term uptrend. I selected a stock that had recently formed this pattern, indicating bullish momentum. I confirmed the signal with volume analysis to ensure it was not a false breakout.

The outcome was mostly as I expected. The stock began to trend upward shortly after the crossover, and I managed to enter the trade early. Within a few trading sessions, the price increased steadily, resulting in a moderate profit. However, the upward movement was slower than anticipated due to market-wide volatility.

Next time, I would consider combining this strategy with Relative Strength Index (RSI) to filter out overbought conditions and improve entry timing. This adjustment would help minimize risk and enhance returns.