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EDUCATION - Moving Average Trading Tutorial ⚡⚡

Education
BINANCE:BTCUSDT   Bitcoin / TetherUS
What is a Moving Average?

In technical analysis , there’s an indicator called moving average which calculates the average closing price over a set period of time. If the market is too choppy, often a moving average can help smooth things out and provide a clearer visual of what’s going on in the market and an indication as to where the momentum is whether it’s a bear market or a bull market.


How is moving average calculated?

A moving average is calculated by calculating the closing prices and then divided by the set number of days e.g. 100 day moving average takes into account the closing prices for the last 100 days and then divides it by 100 to give you the moving average. Once you have enough data, you will be able to plot a smooth line which you can use to help with your analysis.


How do you use moving average?

In very simple terms: if the price is above the moving average, you can assume that the market is bullish . If price is below the moving average, you can assume that the market is bearish .
The way we use the moving average is that we see it as dynamic resistance/support.
Dynamic support – When price is above the moving average and approaches it, the moving average will act as a support base where price could potentially bounce off.
Dynamic resistance – when price is below the moving average, price may come up to reject the moving average before moving lower.


Transition from bearish to bullish (vice versa)
We found that one of the most probable moments where the moving average acts as a dynamic support/resistance is when price impulses through the moving average and then retests it. It is possible to gain an entry on the retest provided there are other confluences playing a part such as previous structure or price action.


What moving average do we use?
100 and 200 moving average.


Examples



Comment: Correction: Blue text is meant to say BUY set ups only ABOVE moving average
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Comments

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+11 Reply
@Money_Wise_Ltd A lot of us around here work V hard just to get some bill to feed, your narrative about money aint like that in my place, if you got money you are like a mini god...
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@Money_Wise_Ltd money is an unlimited piece of every thing and most important human invention , you should think twice , more in depth to avoid looking like idiot people.
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@moshavasi, right let’s see if you manage to get any brownie points or any upvotes for you “smart” comment against idiot people. In short people might agree with me more than they would with you. Waiting to see the upvotes that you so desperately want
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@moshavasi, let’s put it this way for you smart Alec type of people out there. The ECB today just printed a shit load of more money than the local toilet paper company, why is the spx going down 2% today. The fed is buying 120 BILLION worth of junk mortgage backed securities why isn’t the market hitting ATH by a decent percentage every day. Why do investors look for growth concerns and when that doesn’t happen we have inflation cos of free money from the feds press. This is actually economics as per idiot peoples like me. Which will be very easy for smart people like you to understand
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why do u use indicators when price is the biggest indicator. all indicators are derived from price. Just follow price action. Any indicator is either lagging or shows signals too early
+8 Reply
@erickioko48 price action people always despising indicators, but price action loses the most 😆🤣
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erickioko48 martinzmacj
@martinzmacj, Am not despising indicators. I been using them but since i i learned using price action i find that i cant use indicators any more coz they are always lagging or appear too early
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Great information, what's the best time frames to use 100 and 200ma?
+7 Reply
There is nothing called "dynamic resistance" You either have a resistance or you don't
+5 Reply