A successful A9 trader has thoroughly explained 'Using Moving Averages for Swing Trading'
Never missed a target, truly a unique skill.
Moving averages are the simplest indicator, yet the most classic; they represent the average price over N periods, reflecting the current average price of the market and indicating whether the current position is bullish or bearish.
1. What is a Moving Average?
Moving Average: Also known as the moving average line, it is the average of the closing prices of the stock (or cryptocurrency) over the most recent N days, connected to form a moving average line.
The essence of moving averages is to reflect the average holding cost of the market and the price trend over a period of time.
Commonly used moving averages include:
MA5: Average cost over the last week
MA10: Average cost over the last two weeks
MA20: Average cost over the last month
MA60: Average cost over the last quarter
MA120: Average cost over the last six months
MA250: Average cost over the last year
Among these: MA5 and MA10 are short-term moving averages; MA20 and MA60 are medium-term moving averages; MA120 and MA250 are long-term moving averages.
In daily conversation, we often refer to the following terms:
Weekly line - MA5
Monthly line - MA20
Semi-annual line - MA120
Annual line - MA250