Moving averages: bullish/bearish alignment

This is lesson-collection #04 of Stock Knowledge 101, merging the former kb09–kb10 (2 mini-lessons). Read in order.

MA system: bullish/bearish alignment

This is Lesson 9/31 of Stock Knowledge 101 〔Moving Averages〕.

• MA(N) = average of last N closes, smoothing noise; common MA5/20/60/120/250.
• Bullish alignment: short MAs above long (5>20>60) and rising → strong uptrend.
• Bearish alignment: short below long and falling → weak downtrend.
• MAs themselves are dynamic support/resistance (pullback to MA20 that holds is often a buy).

📌 Hold through bullish alignment, lighten in bearish; MAs are moving support/resistance.

Golden/Death cross & MA in practice

This is Lesson 10/31 of Stock Knowledge 101 〔Moving Averages〕.

• Golden cross: short MA crosses above long (e.g., MA5 over MA20) → bullish; death cross opposite.
• Larger cycles = steadier but laggier; smaller = faster but noisier; combine.
• Price above MA60 = mid-term bullish; below MA250 (year line) = often a bear structure.
• Practice: pullback to a key MA that holds + shrinking volume = good entry; excess deviation tends to fall back.

📌 Golden cross buy / death cross sell is the simplified version; what really works is the pullback onto the MA.

⚠️ This article is a methodological illustration and does not constitute any investment or trading advice. Markets are risky; decide with caution.