I have been speculating in cryptocurrencies for more than 10 years, and now I support my family by speculating in cryptocurrencies. Today, someone finally explained how to read the moving average! The moving average can be said to be a navigator that guides the future direction. Lao Jiu has sorted out the complete moving average patterns and usage skills. If you want to make money from speculation, just remember them firmly and be more handy in the market.

1. Overview of moving average

The moving average is a tool to identify trends by smoothing daily price data. Because of the different time spans, moving averages are divided into short-term, medium-term and long-term, each with its own unique applications and characteristics:

1. Short-term moving average (such as 5-day and 10-day moving averages): reflects the immediate momentum of prices, and short-term market fluctuations can usually be captured by it. The 5-day moving average indicates the strength or weakness in the short term; and the 10-day moving average, as a trading line, can help determine the trend of the short-term market.

2. Medium-term moving average (such as 20-day, 30-day and 60-day moving averages): analyze the medium-term trend and dynamics of prices. The 20-day moving average can be used as a support or pressure point for the medium-term trend, and can effectively identify reversal signals; the 30-day moving average is the medium-term market trend; the 60-day moving average can be analyzed to see whether the medium-term trend is stable and continuous.

3. Long-term moving averages (such as 120-day and 240-day moving averages): provide insights into the long-term price trend. The 120-day moving average reflects the trend of the long-term market, and important reversals and continuous trends are usually formed nearby.

In daily operations, reasonable use of moving averages is convenient for grasping market dynamics and improving the quality and success rate of trading decisions.

2. Classic forms of moving averages

1. Bullish arrangement: The moving average goes up, indicating that the currency price will continue to rise under strong support.

2. Short arrangement: The moving average goes down and there is no support, the currency price weakens, and you need to come out decisively at this time.

3. Golden cross: The short-term moving average goes up, breaks through the long-term moving average, and crosses into an upward trend, which usually indicates that there will be a market.

4. Death Cross: At this time, the short-term moving average is opposite to the golden cross pattern, showing a downward trend, falling below the long-term moving average, indicating a downward trend.

Another point to note: do not rely solely on the moving average, use multiple moving averages to combine judgments, and then cooperate with other indicators such as RSI or MACD to ensure a more comprehensive analysis.

At the same time, setting stop loss and profit targets reasonably and effectively managing risks are what everyone needs to do. Through basic principles and techniques, improve the success rate!#技术分析