Hello, dear Friends!🧡🧡 Today we are talking about Moving Average (MA)!!!
Link on a good view👇🏻
📢The moving average is one of the oldest and most common technical analysis tools.
The moving average - that's average price for a given period.
💡 The period for calculating the moving average is selected at the discretion of the analyst (for example, it can be 25 days).
On my chart you can see 25-day moving average of Bitcoin price.🧐
☝🏻Being the average price over the past 25 days, the moving average on th chart reflects the coincidence of investors' expectations over the past 25 days. If the price is above the moving average, then the current expectations of investors (i.e. the current price) are above the average of their expectations over the past 25 days and bullish sentiment is growing among investors. And vice versa: if the price is below the moving average, then current expectations are below their average level over the past 25 days.
🎯Traditionally, a moving average is used to monitor price changes. Typically, investors buy when the price rises above the moving average, and sell when it falls below it.
👍🏻The advantage of such a trading system using the moving average is, that it allows you to play in the direction of the current trend: after all, any more or less significant change in price is necessarily preceded by a corresponding breakthrough of the moving average curve.
👎🏻Its disadvantage lies in a certain delay of signals. If the tendency of the trend is insignificant (usually it should be twice as long as the period of calculation of the moving average), then you will incur losses!
That's because of this disadvantage I don't use this indicator.🤷🏻♀️
But many successful traders include it in their trading system.
The choice is yours!💪🏻🧡
Thank you for staying with me!💋
Sincerely your Rocket Bomb🚀💣
Link on a good view👇🏻
📢The moving average is one of the oldest and most common technical analysis tools.
The moving average - that's average price for a given period.
💡 The period for calculating the moving average is selected at the discretion of the analyst (for example, it can be 25 days).
On my chart you can see 25-day moving average of Bitcoin price.🧐
☝🏻Being the average price over the past 25 days, the moving average on th chart reflects the coincidence of investors' expectations over the past 25 days. If the price is above the moving average, then the current expectations of investors (i.e. the current price) are above the average of their expectations over the past 25 days and bullish sentiment is growing among investors. And vice versa: if the price is below the moving average, then current expectations are below their average level over the past 25 days.
🎯Traditionally, a moving average is used to monitor price changes. Typically, investors buy when the price rises above the moving average, and sell when it falls below it.
👍🏻The advantage of such a trading system using the moving average is, that it allows you to play in the direction of the current trend: after all, any more or less significant change in price is necessarily preceded by a corresponding breakthrough of the moving average curve.
👎🏻Its disadvantage lies in a certain delay of signals. If the tendency of the trend is insignificant (usually it should be twice as long as the period of calculation of the moving average), then you will incur losses!
That's because of this disadvantage I don't use this indicator.🤷🏻♀️
But many successful traders include it in their trading system.
The choice is yours!💪🏻🧡
Thank you for staying with me!💋
Sincerely your Rocket Bomb🚀💣
Write me if You need my support or wanna trade together 👉🏻
Join me in👇🏻:
🚀💣 t.me/+aAADzO1OqsQ2MGI0
💰 I'm using Bybit and I highly recommend it to You. By using my link - You'll get a nice bonus
www.bybit.com/invite?ref=7X0W2A
Join me in👇🏻:
🚀💣 t.me/+aAADzO1OqsQ2MGI0
💰 I'm using Bybit and I highly recommend it to You. By using my link - You'll get a nice bonus
www.bybit.com/invite?ref=7X0W2A
