📈 Moving Averages are technical indicators that help you to set up easy and reliable trading strategies.
👉There are 4 different types of Moving Averages:
🔹Simple #MA
🔹Exponential #EMA (I use this one)
🔹Smoothed #SMA
🔹Weighted #WMA
1️⃣ Simple Moving Average #MA
The MA does not weight the different prices. It merely averages length prices, so they are less sensitive to large variations and place as much importance on the present as on the past.
2️⃣ Exponential Moving Average #EMA
The EMA gives more weight to the last prices, like the coefficients, the further the point of the length, the less it is taken into account in the calculation. EMA gives more importance to the present and reacts more to major variations.
👉I'll now use these colors in my TA:
🔹EMA20: White
🔹EMA50: Green
🔹EMA100: Blue
🔹EMA200: Purple
▫️MA20 (or EMA20) acts as a buy/sell signal, if the price is in an uptrend and the price is above MA20 it is a buy signal. Conversely, if the price falls and the price is below it is a sell signal.
▫️MA50 represents your stop-loss, which you will regularly raise to match.
▫️MA100 is calculated on the last 100 candles, and may be more beneficial for a longer-term trader.
▫️MA200 represents the general long-term trend, when all the lines are above the gray we are in a bullish trend, if they are below the trend is bearish.
👉We buy when these 2 conditions are met:
🔹 Bullish trend confirmed (the 3 MA are in this order MA20 > MA40 > MA60 > MA200)
🔹 The price is above the MA20
▫️Crossovers Strategy:
When a short-term MA crosses above a longer-term MA, it's a buy signal, as it indicates that the trend is up (Golden Cross). Meanwhile, when a short-term MA crosses below a longer-term MA, it's a sell signal, as it indicates that the trend is down (Death Cross).
🔅Learn TA, Earn Money, and always remember to Have a Strategy Before You Trade. @AlainBKK
👉There are 4 different types of Moving Averages:
🔹Simple #MA
🔹Exponential #EMA (I use this one)
🔹Smoothed #SMA
🔹Weighted #WMA
1️⃣ Simple Moving Average #MA
The MA does not weight the different prices. It merely averages length prices, so they are less sensitive to large variations and place as much importance on the present as on the past.
2️⃣ Exponential Moving Average #EMA
The EMA gives more weight to the last prices, like the coefficients, the further the point of the length, the less it is taken into account in the calculation. EMA gives more importance to the present and reacts more to major variations.
👉I'll now use these colors in my TA:
🔹EMA20: White
🔹EMA50: Green
🔹EMA100: Blue
🔹EMA200: Purple
▫️MA20 (or EMA20) acts as a buy/sell signal, if the price is in an uptrend and the price is above MA20 it is a buy signal. Conversely, if the price falls and the price is below it is a sell signal.
▫️MA50 represents your stop-loss, which you will regularly raise to match.
▫️MA100 is calculated on the last 100 candles, and may be more beneficial for a longer-term trader.
▫️MA200 represents the general long-term trend, when all the lines are above the gray we are in a bullish trend, if they are below the trend is bearish.
👉We buy when these 2 conditions are met:
🔹 Bullish trend confirmed (the 3 MA are in this order MA20 > MA40 > MA60 > MA200)
🔹 The price is above the MA20
▫️Crossovers Strategy:
When a short-term MA crosses above a longer-term MA, it's a buy signal, as it indicates that the trend is up (Golden Cross). Meanwhile, when a short-term MA crosses below a longer-term MA, it's a sell signal, as it indicates that the trend is down (Death Cross).
🔅Learn TA, Earn Money, and always remember to Have a Strategy Before You Trade. @AlainBKK
Power Crypto Club
📈 Moving Averages are technical indicators that help you to set up easy and reliable trading strategies. 👉There are 4 different types of Moving Averages: 🔹Simple #MA 🔹Exponential #EMA (I use this one) 🔹Smoothed #SMA 🔹Weighted #WMA 1️⃣ Simple Moving Average…
What technical indicator or pattern you see very often here... that is missing from the #ETHUSD chart shared above? (See resuls after voting)
Anonymous Quiz
10%
#Bollinger Bands
10%
#EMA Exponential Moving Average
40%
#Fibonacci Retracement
10%
#Flag Pattern
0%
#FRPV Fixed Range Profile Volume
10%
#H&D Head & Shoulders
10%
#IMF Cash Flow Index
0%
#SRSI Stochastic Relative Strength Index
0%
#Triangular Pattern
10%
#Trend Channel