🤔 What is (MA)❓Moving Averages: The Simple Guide to UNDERSTAND and Know When to Buy or Sell Based on (MA)

If you've ever seen those lines on the chart and got lost, don't worry! I'll explain what Moving Averages (MA) are, in a simple way, and how to use them to make smarter decisions.

✅ What is a (MA) Moving Average?

A Moving Average is the average of a cryptocurrency's price over a specific period of time.

For example, if you're looking at a 7MA, it calculates the average price of the last 7 periods. These periods can be minutes, hours, days, depending on the chart you're using.

👉 For example:

• On the 1-hour chart, the 7MA will show the average price of the last 7 hours.

• On the daily chart, the 25MA will show the average price of the last 25 days.

It is “mobile” because the calculation adjusts as time goes by.

❓How does this help me?

Moving Averages help smooth out market movements. They eliminate the daily variations that can be confusing and show a general trend: Is the market rising or falling in a given period?

✅ Practical Example

1. To Identify Trends

If the MA is sloping upwards, it is a sign of bullishness (bullish market).

If it is sloping downwards, it is a sign of bearishness (bearish market).

Example: On the Bitcoin chart, you see the 7MA consistently rising above the 25MA – this is a sign that the market is in an uptrend.

2. Buy and Sell Points

When the 7MA line (short term) crosses above the 25MA (medium term), this may indicate a time to buy.

😏 If the 7MM crosses below the 25MM, it could be a sell signal.

Now that you know that (MM) are based on past prices and show trends, how about testing them in your next trade? They could be the difference you were missing!

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