Used to smooth data and identify a trend Help in identifying S&R levels Can be predicting indicators Many bots use this for their trading strategy, follow their trades MA Crosses are signals Converging MAs = Consolidation. Expect volatility on resolution
Use of 50/200 MAs 50 crossing over 200 = Golden Cross 200 over 50 = Death cross 200 EMA is a high probability bid zone Distance from 200 MA = sign of overbought