01   /   BUY ZONE

Above both. Look for longs.

When price is trading above both simple moving averages, your bias is bullish. Only look for LONGS (buys).

The 20MA tracks the shorter-term picture. The 200MA gives you the longer-term context. Above both? Your direction filter points up. No shorts. No guessing.

02   /   SELL ZONE

Below both. Look for shorts.

When price is trading below both simple moving averages, your bias is bearish. Only look for SHORTS (sells).

Don’t fight the current or try to catch the bottom. Keep your focus on short setups that meet your trading rules.

03   /   NO TRADE ZONE

In between? Stay out.

Welcome to the Twilight Zone. Price is between the two moving averages, so your bias is neutral. No trades.

This is the murky middle: one moment price looks bullish, the next it flips. Let the market choose a direction. Patience is part of the strategy.

YOUR PRE-TRADE CHECK

ABOVE BOTH  →  Longs only

BELOW BOTH  →  Shorts only

IN BETWEEN  →  No trades

ASK YOURSELF THIS:
Before you click buy or sell:
Where is price relative to the MAs?