Guide

Slope first, cross second

A habit from our evening rooms — judge the average’s direction before celebrating a crossover.

In our Martin Place evenings we open many drills the same way: cover the crossover markers and ask only whether the slower average is rising, falling, or flat. Students are often surprised how often they previously treated a cross as bullish while the slower line was still rolling over.

A one-minute pre-trade check

  1. Is the slower average’s slope aligned with the trade idea?
  2. Has slope persisted for enough bars to matter on your timeframe?
  3. Only then inspect the faster average and any cross.

This order does not guarantee profitable trades. It reduces the number of trades taken against a still-declining context. In technical analysis training focused on moving average interpretation, that reduction is a worthwhile first win.