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EDUCATION - Moving Average Trading Tutorial ⚡⚡What is a Moving Average? In technical analysis, there’s an indicator called moving average which calculates the average closing price over a set period of time. If the market is too choppy, often a moving average can help smooth things out and provide a clearer visual of what’s going on in the market and an indication as to where the momentum is whether it’s a bear market or a bull market. How is moving average calculated? A moving average is calculated by calculating the closing prices and then divided by the set number of days e.g. 100 day moving average takes into account the closing prices for the last 100 days and then divides it by 100 to give you the moving average. Once you have enough data, you will be able to plot a smooth line which you can use to help with your analysis. How do you use moving average? In very simple terms: if the price is above the moving average, you can assume that the market is bullish. If price is below the moving average, you can assume that the market is bearish. The way we use the moving average is that we see it as dynamic resistance/support. Dynamic support – When price is above the moving average and approaches it, the moving average will act as a support base where price could potentially bounce off. Dynamic resistance – when price is below the moving average, price may come up to reject the moving average before moving lower. Transition from bearish to bullish (vice versa) We found that one of the most probable moments where the moving average acts as a dynamic support/resistance is when price impulses through the moving average and then retests it. It is possible to gain an entry on the retest provided there are other confluences playing a part such as previous structure or price action. What moving average do we use? 100 and 200 moving average. Examples
Education
by Altsignals
4
EDUCATION - Moving Average Trading Tutorial ⚡⚡What is a Moving Average? In technical analysis, there’s an indicator called moving average which calculates the average closing price over a set period of time. If the market is too choppy, often a moving average can help smooth things out and provide a clearer visual of what’s going on in the market and an indication as to where the momentum is whether it’s a bear market or a bull market. How is moving average calculated? A moving average is calculated by calculating the closing prices and then divided by the set number of days e.g. 100 day moving average takes into account the closing prices for the last 100 days and then divides it by 100 to give you the moving average. Once you have enough data, you will be able to plot a smooth line which you can use to help with your analysis. How do you use moving average? In very simple terms: if the price is above the moving average, you can assume that the market is bullish. If price is below the moving average, you can assume that the market is bearish. The way we use the moving average is that we see it as dynamic resistance/support. Dynamic support – When price is above the moving average and approaches it, the moving average will act as a support base where price could potentially bounce off. Dynamic resistance – when price is below the moving average, price may come up to reject the moving average before moving lower. Transition from bearish to bullish (vice versa) We found that one of the most probable moments where the moving average acts as a dynamic support/resistance is when price impulses through the moving average and then retests it. It is possible to gain an entry on the retest provided there are other confluences playing a part such as previous structure or price action. What moving average do we use? 100 and 200 moving average. Examples
Education
by Altsignals
24
CARDANO - How And Where To Buy!In our last analysis of ADAUSDT, we were waiting for a break of the descending trendline which we thought to be a falling wedge at the time. We haven't broken it yet and since then we spiked down to retest the $1 mark where we have previous structure, 200EMA and the major trendline. For confirmation, we are waiting for the break of the descending trendline to signal that we have broken the downtrend. Will be watching how price reacts in the next couple of days. If we do break, watch for bull flags. We will update once we get a significant move.
by Altsignals
10
CARDANO - How And Where To Buy!In our last analysis of ADAUSDT, we were waiting for a break of the descending trendline which we thought to be a falling wedge at the time. We haven't broken it yet and since then we spiked down to retest the $1 mark where we have previous structure, 200EMA and the major trendline. For confirmation, we are waiting for the break of the descending trendline to signal that we have broken the downtrend. Will be watching how price reacts in the next couple of days. If we do break, watch for bull flags. We will update once we get a significant move.
by Altsignals
1
RIPPLE - How To Trade This Parallel ChannelIn our last XRP analysis, we had a sell set up from the 0.78 level where we indicated that price may break and retest that level before moving lower. Price did exactly as we anticipated and it dropped over 30%! Now we are approaching the support of the parallel channel where we may see a bounce. We have 3 key areas we are looking at. Descending Trendline We have a descending trendline in place where we can monitor for a break. Once broken, we can look for bull flags to take XRP higher. Parallel Channel Support Another area we are looking at is the parallel channel support where price previously bounced off twice. We can look for a third touch of that channel support to take XRP back up. Double Bottom We also have a lower timeframe structure we can monitor for a double bottom. Price bounced off the 0.52 level and we can see how price reacts to that level again. If we get buying pressure from that level, we can enter with stops below 0.52.
BINANCE:XRPUSD.P
by Altsignals
RIPPLE - How To Trade This Parallel ChannelIn our last XRP analysis, we had a sell set up from the 0.78 level where we indicated that price may break and retest that level before moving lower. Price did exactly as we anticipated and it dropped over 30%! Now we are approaching the support of the parallel channel where we may see a bounce. We have 3 key areas we are looking at. Descending Trendline We have a descending trendline in place where we can monitor for a break. Once broken, we can look for bull flags to take XRP higher. Parallel Channel Support Another area we are looking at is the parallel channel support where price previously bounced off twice. We can look for a third touch of that channel support to take XRP back up. Double Bottom We also have a lower timeframe structure we can monitor for a double bottom. Price bounced off the 0.52 level and we can see how price reacts to that level again. If we get buying pressure from that level, we can enter with stops below 0.52.
BINANCE:XRPUSD.P
by Altsignals
8
ETHEREUM - Are You Buying Or Selling?Ethereum is at a critical level where price can breakout either way. BUY We are watching the descending trendline for a break upwards to break the $2000 level. We can get in on the retest of that level. The first targets would be the $2900 level where we've seen price react previously. SELL If we break the bottom of $1700, we can go ahead with our Short set up. We will be watching for a clear break of the $1700 level and then a retest of that level to enter sells. First targets would be the $1100 level where there is previous structure.
by Altsignals
3