Averages simply give you an idea of ​​whether the price performance of this currency is better than its previous performance or not

That is, if we put the simple average

AND

We chose the average number 20

I mean, give me the performance of this currency compared to its last 20 candles. Was the performance better? (You may want to see the currency price above the average)

Or worse? (At that time, you will see the price of the currency lower than the average)

The larger the interval, the larger the average reading gives you a better reading

Meaning, the average of 200 on a monthly interval is stronger than the average of 10 on an interval of half an hour

Simply and quickly, keep this information in mind

1️⃣

Do not trade a currency that is lower than its monthly or weekly average, especially at large averages of 50 and above.

2️⃣

The ideal situation is for the averages to be arranged in the correct manner. This means that at the beginning you get the 200, above it the 100, then after that the 50 until you reach the price. This is the ideal situation for the averages.

3️⃣

The price, whether it likes it or not, must revisit the averages and often bounce back from them in order (note the attached image of Bitcoin)

4️⃣

In the attached picture of Bitcoin, I put my settings for the average

AND 20 50 100 200

5️⃣

Notice how it rebounded after touching them, and I expect the next correction to visit and touch the 200 average

6️⃣

Averages are considered moving resistances or supports (depending on price location)

8️⃣

Averages and indicators are important, but they are never a substitute for technical analysis

In the attached image, Bitcoin’s position is $BTC . See how it respects the averages. For your information, we are at the monthly interval. This is the first time in a year, and then #BTC is closed in two cases:

1- Green candle above the 10 and 20 averages

2- Swallows negative blood for more than 15 months

I expect it to return to test the 100 average after a short upward wave, and God knows best.

Make averages one of your filters and initial research

It was my turn 🌹