In the sometimes-complicated world of technical analysis, it often pays to just keep things simple.
That’s why I spent the morning checking the list of companies making technical moves as their patterns grow stronger. And the simplest way to do that is to scan my database for stocks completing a silver cross.
A silver cross occurs when a stock’s 20-day moving average crosses above its 50-day moving average.
Most traders have heard of the golden cross instead. It’s similar, but it’s signaled when a stock’s 50-day moving average moves above its 200-day moving average.
In both cases, the bottom line is the same – a shorter-term trendline crosses above a longer-term trendline. Usually, this signifies a transition from either a correction or consolidation into an uptrend.
Typically, a silver or gold cross is a bullish catalyst for the stock.
My database models scan for gold and silver crosses each day to find stocks moving into Wall Street’s “fast lane.” But as a trader, I’m more interested in silver crosses than gold.
Why? Because they’re more likely to develop into better, faster gains.
While the “cross” puts a stock on my radar, I learn everything that I need to know by putting eyes on the charts – and following two simple rules.
In fact, my database found three stocks with a silver cross today.
But only one follows my rules – and it’s signaling a 30% payday come 2021…