Hello, I am Shizaibiying. As my number of fans exceeds 2K, I would like to share some useful information with my fans. I hope everyone will make a fortune in this bull market! Next, I will share the usage of moving averages at various levels!
Moving average is an important technical analysis tool. Moving averages at different levels have different uses in actual combat:
🔶Short-term moving average (such as 5-day moving average, 10-day moving average)
👉🏻Reflecting short-term trends
⭐️The 5-day moving average and the 10-day moving average are more sensitive to short-term fluctuations in the currency price and can quickly reflect the short-term trend of the currency price.
🔸When the price of a currency breaks through the short-term moving average, it may indicate the beginning of a short-term upward trend;
🔸When the price of a currency falls below the short-term moving average, it may mean the formation of a short-term downward trend.
👉🏻Short-term trading reference
⭐️For short-term traders, they can make buying and selling decisions based on the trend of the short-term moving average.
🔸When the 5-day moving average crosses the 10-day moving average upward, it can be considered a short-term buy signal.
🔸When the 5-day moving average crosses the 10-day moving average downward, you can consider short-term selling.
🔶Medium-term moving average (such as 20-day moving average, 30-day moving average, 60-day moving average)
👉🏻Confirm the mid-term trend
⭐️The medium-term moving average is relatively stable and can better reflect the medium-term trend of the currency price.
🔸When the price of a currency moves above the medium-term moving average, it indicates that the medium-term trend is positive.
🔸When the price of a currency is running below the medium-term moving average, the medium-term trend may be weak.
👉🏻Band operation basis
⭐️Investors can perform swing operations based on the support and pressure of the medium-term moving average.
🔸When the price of the currency falls back to the medium-term moving average and gets support, you can consider buying.
🔸When the coin price rises to the medium-term moving average and encounters pressure, you can reduce your position appropriately.
3. Long-term moving average (such as 120-day moving average, 250-day moving average)
👉🏻Judging long-term trends
⭐️The long-term moving average plays an important role in indicating the long-term trend of the currency price.
🔸When the price of a currency stands above the long-term moving average, it may mean a long-term upward trend.
🔸When the price of a currency runs below the long-term moving average for a long time, the long-term trend may be bearish.
👉🏻Strategic investment reference
⭐️For long-term investors, the long-term moving average can be used as a reference for strategic investment.
🔸When the long-term moving average begins to flatten out and turn upward, it may be a buying opportunity for long-term investment.
🔸When the long-term moving average turns downward, you need to be alert to the change in the long-term trend.
It should be noted that the use of moving averages is not absolute. In actual application, it should be combined with other technical indicators, trading volume and the overall market situation for comprehensive analysis to improve the accuracy of judgment. If you feel that the content of the article is good, you can share it with more friends in need. You are also welcome to like and support it. More valuable content will be shared later!
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