đ Bullish Trend Signals
đč Golden Cross: Short-term moving average (e.g., 50-day) crosses above a long-term moving average (e.g., 200-day) â potential for upside trend reversal.
đ Moving Average Crossover: Short-term moving average crosses above a longer-term moving average, signalling a potential buy.
đ Moving Average Support: Price bounces off the moving average, signalling continued uptrend momentum.
đ Increasing Moving Average: When the moving average slopes upward, it reflects a strong uptrend.
đ Bearish Trend Signals
đ» Death Cross: Short-term moving average (e.g., 50-day) crosses below a long-term moving average (e.g., 200-day), hinting at a downside reversal.
đ Moving Average Crossover: Short-term moving average crossing below a long-term one â a potential sell signal.
đ Moving Average Resistance: Price struggles to break above a moving average, signalling continued downtrend.
âŹïž Decreasing Moving Average: Downward slope on the moving average indicates a strong downtrend.
đ Neutral Trend Signals
đ Moving Average Convergence: Short and long-term moving averages converge, signalling potential consolidation or a sideways trend.
â Flat Moving Average: Horizontal moving averages signal a phase without clear direction.
âïž Moving Average Whipsaw: Back-and-forth moving average crossings indicate a volatile, trendless market.
đ Additional Tips
đ Use Multiple Moving Averages: Combining different time frames strengthens trend confirmations.
đ Combine with Other Indicators: Pair with RSI or Bollinger Bands for increased accuracy.
đ Incorporate Fundamental Analysis: Moving averages work well when supported by fundamentals for well-rounded decisions.
đš Beware of False Signals: Practice good risk management to minimize potential losses.