I've been watching these trends, I've missed them in the past so I started watching for them.
DDS on/about 10/1 hammered down below the 50 day and then took back off, offering an entry point as it reversed.
NET on/about 10/1 hammered down below the 50 day and then took back off, offering an entry point as it reversed.
I'm a newer trader so I'm in the learning phase, I missed the boat on both stocks. Thank you for the video, because I look for this repeated action and your video showed it.
I attached the video at the top of this page as the two moves are different. DDS had formed a flat base pattern before the shakeout below its 50sma, and rally above that level. NET (Cloudflare) has been running for quite some time and there is no consolidation. It is still trading well above its 50sma. Maybe it will form a base now after a long run?
I was trying to show that we do not give up on stocks because they slice their 50sma. We keep an eye on them because often times that is just a shakeout, and they rally right back through the moving averages. We do not buy them back and watch them rally without us.
CRWD is a good example of a stock that slices its 50sma often, and then it rallies back through that moving average. That is a consistent pattern for CRWD. They report earnings December 1.
I hope this helps!