MA 10 50 Double Crossing perfectly shown on BTCUSDT Daily
Reference: Technical Analysis of the Financial Markets by John Murphy.
Moving Averages are one of the very useful trend-following tools.
But I would like to elaborate more on the meaning of the term " trend-following": It indicates the tools which does not provide us with specific price targets, but it shows us if a specific up- or downtrend are in action. By means of such tools, we detect these trends and simply jump on the trend and take profit. Regardless of other technical tools which unfold price objectives, obviously, the amount of the profit depends heavily on your mentality and the control you have on your feeling of greed and fear :)
2 very fast notes on Moving Averages:
1- They perform poorly in sideway situation (when price move in a horizontal channel)
2- Signals are:
i. when prices close below the MA----> sell
ii. when prices close above the MA----> buy
iii. when lower degree MA crosses above the MA of higher degree---> buy
iiii. when lower degree MA crosses below the MA of higher degree---> sell
Important MA pairs to see the double crossing daily timeframe: 5 & 20 / 10 & 50
MAs for triple crossing: 4 & 9& 18
ENJOY your TRADEs
Moving Averages are one of the very useful trend-following tools.
But I would like to elaborate more on the meaning of the term " trend-following": It indicates the tools which does not provide us with specific price targets, but it shows us if a specific up- or downtrend are in action. By means of such tools, we detect these trends and simply jump on the trend and take profit. Regardless of other technical tools which unfold price objectives, obviously, the amount of the profit depends heavily on your mentality and the control you have on your feeling of greed and fear :)
2 very fast notes on Moving Averages:
1- They perform poorly in sideway situation (when price move in a horizontal channel)
2- Signals are:
i. when prices close below the MA----> sell
ii. when prices close above the MA----> buy
iii. when lower degree MA crosses above the MA of higher degree---> buy
iiii. when lower degree MA crosses below the MA of higher degree---> sell
Important MA pairs to see the double crossing daily timeframe: 5 & 20 / 10 & 50
MAs for triple crossing: 4 & 9& 18
ENJOY your TRADEs