See original
#XRP #BTC
Look, no one knows where the price is going, right? But the market leaves clues, and this is where the famous moving average comes in. It's not a crystal ball, but it helps you understand what's going on and make more informed decisions.
Let me give you a practical example: take a 7-period EMA on the weekly chart. What does it do? It looks at the last 7 weeks and says: 'The market is like this, pay attention'. If the price is above the EMA, it means that buyers are in control. If it's below, sellers are in charge.
Now, the most interesting thing is when the price touches or crosses the average. This can be a warning: is the trend changing? Or is it just a pause? It all depends on the context, but this crossing can be that signal that makes you pay more attention.
And remember: the EMA can function as a dynamic support or resistance. During a strong trend, it is common for the price to hit the average and then move back in the direction of the trend. This can be a smart entry point.
In the end, what I always say is: use the average as a tool, not as an oracle. The market is sovereign, but when you understand what it is telling you, it becomes much easier to trade with confidence.
Look, no one knows where the price is going, right? But the market leaves clues, and this is where the famous moving average comes in. It's not a crystal ball, but it helps you understand what's going on and make more informed decisions.
Let me give you a practical example: take a 7-period EMA on the weekly chart. What does it do? It looks at the last 7 weeks and says: 'The market is like this, pay attention'. If the price is above the EMA, it means that buyers are in control. If it's below, sellers are in charge.
Now, the most interesting thing is when the price touches or crosses the average. This can be a warning: is the trend changing? Or is it just a pause? It all depends on the context, but this crossing can be that signal that makes you pay more attention.
And remember: the EMA can function as a dynamic support or resistance. During a strong trend, it is common for the price to hit the average and then move back in the direction of the trend. This can be a smart entry point.
In the end, what I always say is: use the average as a tool, not as an oracle. The market is sovereign, but when you understand what it is telling you, it becomes much easier to trade with confidence.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
BTC
93,221.39
-0.99%
Replies 0