Today we will examine how Moving Average can be used as a tool in trading.
Moving Average is one of the most famous and popular coin filters. The most straightforward application of MA:
1) Defining the trend.
Uptrend If MA is upward, downtrend if MA is downward.
2) Determining the strength of the trend.
The greater the deviation of price from the moving average, the stronger is the trend.
3. Signal to buy or sell the asset.
There are two cases that can be considered a buy signal:
- Moving average price crossing from bottom to top; - The crossing of the lower MA of the older MA (for example, MA50 crosses MA100) from bottom to top.
The opposite of two cases can be used as a sell signal :
- Moving average price crosses from top to bottom; - The crossing of the lower MA of the older MA (e.g. MA50 crosses MA100) from top to bottom.
ETH/USDT
Above is the bright example of MA50+MA100 combination using H1 timeframe.
On the chart, MA50 is marked in green, and MA100 is black.
As a rule, the trend starts with small timeframes and then moves on to the older ones.
Here is another example using 4H timeframe for LINK/USDT
And finally, an example of working out the combination of MA50+MA100 on the 1D timeframe for LTC/USDT.
Hope this is going to be valuable for you! Good luck and watch out for the market
which is the best ma cross technique in day trading..any timeframe ...if u know...share pls...
UnknownUnicorn10064030
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@ariyan40, Hi! The best technique is crossing ma200 like a trigger - use EMA 21 and EMA40 as the trade entering point
seoco
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@caselinben, On the 1hour chart I always use EMA20 and SMA 50. Check the difference between SMA and EMA 50.
UnknownUnicorn10064030
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@seoco, Hey! You can use the following strategy: MA100 or MA 200 for trigger and additional EMA21 + EMA40+ EMA55 for confirmation for an entry point. This strategy works well for crypto in my experience