Essential Strategies for Cryptocurrency Trading ~ Moving Average Strategy
The moving average strategy is a technical analysis method based on moving averages (MA). It judges market trends and trading signals by observing the arrangement, crossing, and relationship between prices and moving averages. Here are common moving average strategies and their key points: 1. Single moving average crossover rule Choose a moving average (such as the 5-day, 10-day, 30-day, or 60-day moving average) as the basis for operation. When the stock price crosses above the moving average from below, it is a buy signal; conversely, when the stock price crosses below the moving average from above, it is a sell signal. 2. Golden cross or death cross of two moving averages • Golden cross: The short-term moving average (such as the 5-day or 10-day moving average) crosses above the long-term moving average (such as the 20-day or 30-day moving average), indicating an upward trend and serving as a buy signal.
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