What's going on guys, welcome back to the channel. Appreciate you guys tuning in. I Want to make a quick video for you guys this morning? Uh, regarding what it means when I say buy or sell signal Um, because I did get a comment on one of my most recent videos where the gentleman says you just said it was a sell signal and now the Market's obviously up much higher. So if you were to look at the title of one of the videos I post potentially and it says buy or sell signal right you could very well think oh, Connor and his video and and he said it's a sell signal so you might have the idea that the market is supposed to go down or at least I think it would be going down since the title of the video.

All right. So what I mean here is this video in particular just a couple days back, spy created a sell signal before CPI You should be in cash, All right. So what I want to do is make a video right here that just walks really quickly through the movement of the stock market over and under the 50 SMA and help you understand that that's exactly what we mean by sell and buy signal. So that that way, if you were to look at this video before CPI you're not necessarily thinking the Market's going to go down indefinitely, but you just know the market is given a sell signal based off of the things that we look at.

So again, when most people here sell signal on the market, they think stock market's supposed to go down when I say sell signal on the market. All that means in the short term, the market is below the 50. SMA Therefore, the likelihood of upwards movement in this moment is not going to happen. It can only happen if we recover the 50.

So the best thing that we can do is quickly run through this market and we're going to use only a 50. SMS I'm going to take off all this other stuff and we're just simply going to look at the 50. SMA And this is really just to get you guys in line with the same thought process as me or what you would want to use when using a system. All right.

So let's go back. specifically. Um I think it was let's see before CPI so it was right here. Okay, so remember I posted that video Spy Creative sell signal that was right here.

Okay when the market broke down right there and then this was the CPI day. So in reality the market did give a little mini cell move below the 50. SMA All right. So I post that video later in the day.

Market gives a sell signal before CPI that would be right here. then the following day into pre-market going into the open. what happens? We re-break the 50 so that would be a new Buy Signal Up right? And then this candle here breaks down the 50. that would be a sell signal in the day and this candle breaks up to 50.

that would be another. Buy Signal these would be bounces off. Support that move below the 50 would be another cell move. This move over the 50 would be another buy move.

So in the amount of time that I posted this video, all right. So this video talking about the sell signal. in the time that I posted that video, we had a buy a cell, a buy a sell, and a buy. So we've had three more bias signals or buy moves and two more sell signals or short moves since the moment I posted that.

Okay, now that's kind of tricky to trade. Very tricky. Okay, partly because we're in kind of this back and forth. Market All right now.

let's go back to, um, a selling move. Okay, so what if I had posted that video saying Hey the Spy created a sell signal and then we broke the 50 and did this. That guy would go oh my. God that was.

That was pretty incredible. He said spy was a sell signal and the market went down and that's all just based off the premise that we're below the 50. and that's pretty much the nature of it is when you're below the 50, you are in cash or Shore But not bullish because we know that until we reclaim the 50, we generally don't see long bias moves. Here's The clear of the 50 pre-market pop.

pull back long following day, pull back to support Hit 50 long coming into CPI cell move little end of day snap next day along, sure along ashore, back to a lawn. All right. So now I want to take you back just a little bit further in this chart. Okay, one second to here.

so think about this right here. This would be a buy which didn't work very well I Mean you had little opportunity to make some money unless you held to this end of the candle, but you had some Wicks below it so that's the tricky one. But the next day we break the 50 SMA Here that would be a sell signal. So in this instance you could say I'm gonna go short or I'll do As Connor said in the video when he said sell signal you should be in cash.

So let's just say you went to cash. Meaning you close out your long positions, you have no long positions, you're just sitting waiting for the next. Buy Signal So we break the 50, you would no longer be long. You're in cash.

You would stay in cash throughout this whole entire move. Why? Because you know it's not over the 50. And then once you start to get over the 50, this is where you start to go. Okay, maybe I'm going to buy some long sell some on the move up.

I Know that when we break over the 50, the 50 becomes support until it's not so then I'll watch for dips off to 50. So you'd start getting back long bias in the market around here and then that would lead you into this long move. right? And as the market comes down, it breaks to 50. That would be a cell.

You go back to cash. Don't even think about short to say. oh, we broke the 50, we're starting to close below. I'm going to go to cash, then you would avoid that drop.

Okay, you get a pop over the 50 here. You might have gotten long and then as soon as it re-breaks you go back to cash. Okay, so now you're back to cash. re-break to 50.

You might add long here, and then you know you get a little tizzy there. but ultimately you're over the 50. market breaks up. You're long.

You're long, You're long, You're long, You're long, You're long, You're long, You're long. You probably already sold. I would have. And then if the market breaks at 50, what do we do? We go to Cash.

Market's starting to break to 50. Market Just broke to 50 markets closing below the 50. We're going to go to Cash and we avoid that huge drop and we'll get back long when we break over the 50 and that will be a buy there. We just broke over the 50 SMA pre-market that day, continue over and we're into long dip scenario until we close below and then we're long and then we're short and then we're long and then we're short and then we're long.

So you can do a lot of back and forth trading. Not that you won't have these little random moves in there that don't amount to much. Uh, that's gonna happen right when markets consolidate. Moving Average systems specifically give you more false signals, just like anything in consolidation.

But it's when you know that you're in consolidation that it's easier to manage those. So using an SMA system over under as you kind of saw in this video also comes down to understanding when Market environments are in consolidation or more likely to keep consolidating and so on so forth. And then you'd be more likely to know that this balance probably isn't going to break out right, or the likelihood of us reversing and coming down and breaking. This is is higher, right? So once your mind starts to get in line with what's more likely to occur than the SMA system gets even more easy to work with.

Okay, so again, just going to emphasize real quick. When you look at this chart and we're using this system, look at this buy. This is a Buy Signal and this lasts for about two days. Okay, this is a sell signal and it lasts for, you know, almost a day before you go into a Buy Signal.

This buy move is a fake out buy, right? What I mean by is it pops up, comes right back down. So this may have lasted five minutes, 10 minutes, 20 minutes. So this buy lasted say 20 minutes and then it was back to his cell. All right.

This cell lasted for all day. and then it went back to a buy. By the end of the day. This Buy Signal lasted one, two, three, four, five, five days.

All right. This cell move lasted one, two, three, four, fifth day. it broke up to a buy. This Buy Signal lasted one, two, almost two days.

This signal lasted a couple hours. An hour. An hour. An hour.

Five hours an hour. Two hours. Then it was back to a buy. So what you're looking at is a short term SMA on a 30 minute chart and this is used as short-term momentum trading that can last from weeks to as short as minutes.

That is the function of this. By getting in long, you may very well be in a play that lasts a week to two weeks. By getting in a short, it may last a day to a couple hours. You may get into a long that lasts two minutes because it's a false long that goes back to a real short the last two hours.

That's what we mean when we say buy or sell signal. It's just the algorithm and the momentum that's currently flipped either to a positive or A negative side of the market based off of the algorithmic 50 SMA That's pretty much it. Alright guys, take care, have a good one. I'll see you in the next video for a recap a little later today.