The final criteria for a purchase on the trading plan is to have the 30 day moving average cross up through the 50 day moving average. This is discussed further in the Charting Indicator Basic section, but in summary, having the 30 day moving average cross up through the 50 day moving average is a confirmation that a medium term uptrend has begun. Similarly, when the 30 day moving average crosses down through the 50 day moving average, then this is a confirmation that the medium term trend has ended.

The chart below shows the 30 DMA (red line) crossing up through the 50 DMA (green line) confirming the medium term up trend that can be seen.