MA Analysis
As you can see on the chart, Moving Averages and Exponential Moving Averages can play a significant role in determining support and resistance areas. This is multiplied further when there are two or more MA/EMAs at the same price level, and these can make for great validation levels; "If price closes above these 3 MAs, look for long entries on lower timeframes" etc.
You can also see that price traded in a fairly well defined range from June to October in 2018, hemmed in by both the 10 and 20 EMAs, and providing some great opportunities. Additionally, you may notice that the Monthly candle of December 2019 had little chance of significant price action, with 2 MAs directly above, and 2 MAs directly below (yikes).
Currently, we are pressing up against MA resistance, which previously participated in the resistance of closing price in the April 2019 candle, and the December 2019 candle. Though I expect this month to close quite red, I would be surprised if we don't wick to the mid 9k range, where I will look for weakness.
Use stops, and confluence.
You can also see that price traded in a fairly well defined range from June to October in 2018, hemmed in by both the 10 and 20 EMAs, and providing some great opportunities. Additionally, you may notice that the Monthly candle of December 2019 had little chance of significant price action, with 2 MAs directly above, and 2 MAs directly below (yikes).
Currently, we are pressing up against MA resistance, which previously participated in the resistance of closing price in the April 2019 candle, and the December 2019 candle. Though I expect this month to close quite red, I would be surprised if we don't wick to the mid 9k range, where I will look for weakness.
Use stops, and confluence.
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