Moving averages are used to understand how the price of a cryptocurrency changes over time.

Think about it, $TON prices go up and down every day, sometimes rising rapidly and sometimes falling.

Here, we use moving averages to see these fluctuations more clearly. In other words, to understand the general direction in which prices are moving in the short, medium or long term.

Example: $TON Price Movements

Let's say you are tracking $TON prices on hourly, 4-hour, 12-hour and daily basis. With these different time frames, you can see more clearly how the prices are moving.

1. 4 Hour Moving Average

This takes the average of the $TON price over the last 4 hours. For example, prices may have gone up and down a bit over the course of 4 hours in the morning, but this average gives you a general idea of ​​where the price has been heading over that 4 hour period. If the 4 hour average is going up, prices may be going up. But if it is going down, prices are going down.

The 4-hour average is good for capturing short-term movements. That is, it takes into account very fast-changing prices and gives you an immediate idea: “Are prices going up or down right now?”

2. 12 Hour Moving Average

This average looks at the last 12 hours.

For example, you woke up in the morning and looked at the $TON price, but you want to see a general price trend over half of the day, not just a few hours. Here, the 12-hour average gives a more balanced view of price action up until that time.

This provides a longer-term view than the 4-hour average.

If the 12-hour average is upward, it could mean that “prices are generally rising today.” It gives a more reliable signal because it covers a longer period of time.

3. 1-Day Moving Average

Now, let's take a look at the 1-day moving average.

This time it shows how the $TON price has moved over the last 24 hours. If the price has been steadily rising throughout a day, this average will also trend upwards. If the price has been falling, this average will also trend downwards.

This is the largest time frame, so it gives you an idea of ​​a longer-term trend.

If the 1-day average is upward, it means that “prices have generally been on the rise over the last 1 day.” It is used to make long-term investment decisions because it ignores short-term fluctuations and shows the big picture.

When Do You Use Which Average?

• The 4-hour average is ideal for viewing very fast-moving, short-term price movements. It is useful if you need to make quick decisions or are trading on the fly.

• The 12-hour moving average is good for showing a bit more calm and balanced price action. You can use it if you want to see where the price is going in the medium term.

• The 1-day average is used to get a general and long-term idea. This average provides a clearer trend by ignoring short-term ups and downs.

Conclusion:

If the price of $TON is above these averages, you can consider the price to be in an uptrend. But if the price is below these averages, it may be starting a downtrend.

Moving averages give you a way to understand the general sentiment of the market. Whether you are investing short-term or long-term, these tools give you a better idea of ​​where the price is likely to go.

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