📊Moving Average(MA): Use Cases📍 What Is a Moving Average (MA)?
A Moving Average (MA) is a popular technical analysis tool used in finance to indicate the stock's average price over a certain time frame. Its purpose is to reduce price volatility by creating a continually updated average price based on the stock's historical data.
The computation of a moving average helps to minimize the influence of unpredictable and short-term price fluctuations on a stock over a designated period. Two types of moving averages are commonly used: simple moving averages (SMAs) that employ a straightforward arithmetic mean of prices over a particular timeframe, and exponential moving averages (EMAs) that prioritize recent prices over older ones by assigning them greater weight.
📍 Simple Moving Average(SMA)
A simple moving average (SMA) is a technical indicator that calculates the average of a range of prices over a specific number of time periods. It can help determine if an asset price will continue or reverse a bull or bear trend. It is an arithmetic moving average, calculated by adding recent prices and dividing by the number of time periods in the calculation. SMAs can be short-term or long-term, with short-term averages responding quickly to price changes and long-term averages being slower. Other types of moving averages include exponential moving averages (EMAs) and weighted moving averages (WMAs).
📍 What Is an Exponential Moving Average (EMA)?
The exponential moving average (EMA) is a moving average (MA) technique that assigns more weight to the most recent data points. It is also known as the exponentially weighted moving average. Compared to a simple moving average (SMA) that gives equal weight to all data points in the period, an EMA reacts more strongly to recent price changes.
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NEGATIVE EXPONENTIAL MOVING AVERAGES CROSSING on BTCThe 10 and 50 period exponential moving average intersection, which is one of the intersections that I take into account, has been confirmed.
For this crossover to remain fake, we need to see a 1-day close above the 10-period exponential moving average at least.
Considering that the market situation is not good in terms of fundamentals, I think that the decline will deepen.
USOIL : Master Of Washing Account's TVC:USOIL
Hi , Trader's .. I am keeping chart very simple for you to understand
Price touching Resistance 1 , If price failed to break R 1 than it can Fall to pivot point around 76$
Price needs to Retest Pivot again for any further bullish momentum
Pivot point Will play a vital role as a death cross for oil
VIJAYA - Ascending parallel channel patternAll details are given on chart. If you like the analyses please do share it with your friends, like and follow me for more such interesting charts.
Disc - Am not a SEBI registered. Please do your own analyses before taking position. This post is only for educational purposes and not a trading recommendation.
🔥 ARUSDT Primed for LONG on DAILY TF ✅Daily Time Frame:
1. Strong Bullish Candle Close and Lagging Span have crossed up Ichimoku Cloud
2. Ichimoku Cloud has printed green (look right)
3. Conversion Line has crossed up Base Line
4. 9 and 21 EMA have crossed up 55 EMA
5. Absurd Volume on Breakout (look left)
6. Buy Signals have been printed on various indicators since Oct 11
Entry: ~$14/wanna take a chance on a pullback which might never happen ~$10~$12) = Strong Demand/Support Zone, Even Number
TP: ~$40 = April High, Even Number, Strong Supply/Resistance Zone
SL: ~$8.2 = some pips below previous swing low/if you really believe in this coin ~$6.99 (some pips below ATL)/DCA for HODLING
Cross 25x
1:4 R:R
!! NOT A FINANCIAL ADVICE !!
RSI Formula Explained (updated) and a LIVE FAILED tradeThis is just an update to the RSI Formula since some of you are still having trouble with it.
Its not as hard as it seems. Now with the oscillator scale reading ZERO at the mid line, there is no math to do.
RSI Values as follows
0-9 = 1 to 2 rr
10-19 = 1 to 3 rr
21-29 = 1 to 4 rr
30-39 = 1 to 6 rr
Dont worry too much about the last two. you want to be safer at trading with the first two.
The last two are really designed for "Trailing your take Profit"
If you have negative values on your RSI, thats fine. just do the trade in a SHORT and follow the same formula.
Watch the video for the full breakdown
$SNX - On the Bullish EdgeHello my Fellow TraderZ,
$SNX is coming to the Edge of the FALLING WEDGE Pattern.
We can easily see the Bullish divergence spotted on 4 HTF RSI.
We need to wait for the Pattern Breakout an the crossing of the EMA55 with decent volume.
Good to trade with minimun 10% - 25% TP.
Trae well my Fam. CHEERS!!!
How to trade using the CSC-HARSI "The Real Way"Welcome to The coffee shop. this is your host and Barista Eric. This podcast is designed to teach you the technical analysis that you should know so you can stay out of false trades in your Crypto endeavors. It's a platform where I get to release my edits of popular indicators. I'll show you how to use them, and of course from time to time I will call out really bad strategies because I don't want you guys to have bad information. Feel free to share this content where you choose and of course do Not fall for scams. I will not approach you online asking you for crypto assets Lending or any type of financial support. But bear in mind that doesn't mean I don't like talking with you guys because from time to time you will find a message from me saying hey how you do when they want to get close to you.
So it's been a while since the CSC-HARSI has been released and I think it's time I do a quick video on an entry and exit for a buy and sell on this indicator.
It has been requested by dozens of you weekly and I have seen all of the videos online on the improper way to use the old version of this indicator. Since the new one is out and it works basically on beast mode I want you guys to be using this to its fullest potential.
today's video is based on using the VWAP as the moving average against the RSI.
So let's just jump right in and get started.
go ahead and open your chart and tradingview
Search fo rCSC-HARSI, or "Coffeeshopcrypto"
Add the indicator to your chart and keep the default settings
open the settings wheel and go to the inputs tab
scroll down to RSI moving average settings and change the ma type to vwap.
Okay that's it you're ready to go and now let's talk about the rules for a long and short trade.
As you do with any chart and any day that you're going to start your trading the first thing you do is you set up your support and resistance level. Personally I do this on a 4-Hour chart. I recommend setting your support and resistance levels initially when you open your chart on a time frame 1 to 2 * above the one you're using.
for example I do my trading on a 1 hour chart so my support and resistance levels are usually set on a 4-Hour chart
Lucky for you the indicator tells you where those things are however you may want to set up your extreme levels as well. You can do that by looking at extreme points of swinging price on your chart and just put a level they're at the top and another at the bottom.
STOCHASTIC IMPORTANCE:
Before we get started let me discuss something very briefly with you about the level of the Stochastic in the indicator. The scale on the right side of the indicator is mainly designed for the stochastic to tell you how hard things are pressing on the gas. In other words if the stochastic is anywhere from zero to 50 There is almost no movement on price. However, once the stochastic is doing anything above the 50 all the way to the 100, the closer it is to 100 the more Force there is in the market. you have to remember that the Stochastic RSI was designed to be a faster RSI.
So if the stochastic is green "Bullish" and moving upwards over 70 there is A LOT of force to the upside..
If it is RED "Bearish" and it's under 50 there is a lot of force to the downside. The closer it is to ZERO the more force there is.
The strategy that I used to enter and exit using this indicator falls under these particular rules:
SHORTS:
1. The stochastic must be in a downtrend.
2. the RSI must be below its moving average.
3. The RSI must be below 50
4. Heikin Ashi candles must be red.
5. The Heikin Ashi candle must open above the moving average and close below the moving average.
6. The most optimal move is when the candle opens above the 60 and closes below the 60 while crossing the moving average.
An alternative to rule six is; If your candle opens above the 50 and above the moving average but close is below both of them at the same time this is also an entry.
Now obviously the rules for getting into long positions are exactly the opposite.
First things first, always take a look at your support and resistance levels that you set up ahead of time.
The second thing is to check your moving averages.
I commonly use a 50 and a 100. Exponential moving average.
If you are using scalping time frames which are anything from the 30 minute and Below then I would suggest using a 20 period Moving average and a 50 period Moving average.
LONG POSITIONS RULES:
1. The stochastic must be in an uptrend.
2. the RSI must be above its moving average.
3. The RSI must be above 50
4. Heikin Ashi candles must be green.
5. The Heikin Ashi candle must open below the moving average and close above the moving average.
6. The most optimal move is when the candle opens below the 40 and closes above the 40 while crossing the moving average.
7. Alternate to rule six is; If your candle opens below the 50 and above the moving average but close is above both of them at the same time this is also an entry.
Bitcoin Short Couldn't be more obvious - 5 to 1 trade With the aggressive downside move this week, buyers trying to take back control of market, but bears are not finished. I think bear market is upon us as weekly structure has been taken out for BTC .
PA is without question trending down with price below the 4H 50 EMA , and consistent lower lows, lower highs.
Good time to sit back and wait for the next short opportunity with PA destined to head back down.
Trade setup
SL: 32670
TP1: 23425
TP2: 20885
Bitcoin CrossroadsBTC weekly historical performance relative to EMA's provides interesting perspective and a rather key inference...
# of Times the 20 EMA has crossed below:
50 EMA: 3
100 EMA: 1
200 EMA: 0
20 EMA Crossings:
1. 20x50 Sep 2018
1a. CONTINUATION downward resulting in additional -58%
1b. 20 EMA only crossing below the 100 EMA
1c. 20 EMA bounced off of 200 EMA
2. 23 Mar 2020 - Reversal with upward trend only
3. 18 April 2022 - APPEARANCE OF CROSSROAD - Trend continuing downward so far...
The most recent 20 EMA crossing below is recent, however the trend appears initially to be a downward continuation.
Worth keeping an eye on as the Federal Reserve and Central Banks look to increase 50 bps this afternoon and the quantitative easing that has been in place since Bitcoin's inception ends and the Fed becomes more hawkish with quantitative tightening.
Bullish pennant corresponding with the andrews pitchforkThe other day I released a reversal prediction based on andrews pitchforks convergence points. Today it looks like there is a bullish pennant forming, and depending on how soon it breaks out, could even correspond with the same prediction zone as the andrews pitchfork convergence.
Once again, this is all speculation based on my personal analysis and opinions, and is not financial advice. The stock market for tesla does not move in correlation to the companies performance. If it did, the stock would not be down nearly 20% after the Q1 report outperformed expectations by over 40%.
I suspect some large degree of emotional trading currently, possibly around the Twitter purchase. However Twitter is not being purchased by Tesla, it is being purchased by Musk, and although Musk is the CEO of Tesla and has done a fantastic job being CEO, he is not the only one contributing to the growth of the company as a whole, and cannot singlehandedly turn the company around in another direction. Even if Musk were to stop being CEO, Tesla would still be able to perform record breaking growth for at least the next 10 years. It may not be to the same degree as it would with Musk as CEO, however it will still be able to do it, they have an abundance of amazing talent at Tesla, not just Musk.
Additionally, Musk has not announced any information about becoming CEO of twitter, and it is very unlikely he will do so. I understand people are concerned with his personal purchase of Twitter, and how much he has talked about it, however people soon forget how much they themselves brag about cool things they do or purchase. Musk is still a human, and purchasing Twitter for him is a big and exciting deal. He is going to brag about it for a bit and spread the word and be excited, that is what humans do.
Tesla has had amazing Q1 report this year, especially considering that historically the Q1 and Q2 report has always underperformed the company on average for that year, with the Q3 showing large ramp up year after year, and the Q4 finishing off the exponential trend for that year. They just built 2 huge factories in Berlin and Texas, and those are ramping up, and I foresee them repeating the same exponential growth later this year around Q3 and Q4.