Technical Indicators
Chapters in this video
- 0:00 Why Carla needs more than a vibe
- 0:52 Simple moving averages: the 50-day and 200-day
- 2:03 Golden cross versus death cross (and the flipped-definition trap)
- 3:22 Overbought and oversold exhaustion
- 4:30 Breakouts and the volume confirmation check
- 5:32 Volume divergence as a trend lie detector
- 6:47 Rapid-fire exam recap
What this video covers
- How a simple moving average (SMA) smooths price action, and why the 50-day and 200-day lines are the two timeframes the exam cares about
- The golden cross (50-day crossing above the 200-day, bullish) versus the death cross (50-day crossing below the 200-day, bearish), and the trap of which line is doing the crossing
- What overbought and oversold actually mean, and why "overbought" does NOT translate to "sell immediately"
- How to validate a breakout above resistance or below support using high volume confirmation
- Why a breakout on weak volume is a suspect false breakout that traps early traders
- Healthy volume behavior in an uptrend versus a downtrend, and how to read price-versus-volume divergence as a reversal warning
- Why volume is the lie detector that must confirm the price trend on exam questions
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.