A Moving Average (MA) is a line on a chart that shows the average price of an asset over a set period. It “smooths out” the price to help you see the trend more clearly.

🧮 Two Main Types:

📊 SMA (Simple Moving Average)

Shows the average closing price over a specific number of days.

Example: 50-day SMA = average of last 50 days.


⚡ EMA (Exponential Moving Average)

Like SMA, but gives more weight to recent prices — reacts faster to price changes.

⏱️ Common Timeframes

📆 Short-Term: 9-day, 21-day

📆 Medium-Term: 50-day

📆 Long-Term: 100-day, 200-day

🔍 How Traders Use Moving Averages

📈 Identify Trends

If price is above the MA, trend is usually bullish.

If below the MA, trend is bearish.

⚔️ Support & Resistance

MAs often act like invisible levels where price bounces or reverses.

📊 Crossover Signals

Golden Cross 💛: 50-day MA crosses above 200-day → Bullish

Death Cross 💀: 50-day MA crosses below 200-day → Bearish

📌 In Short

Moving Averages = Trend Filters

They help traders cut through noise and see the bigger picture.



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