🚨 MOVING AVERAGE ALERT
Today we are going to talk about moving averages.
Moving averages are very important as they indicate possible movements of the asset.
Fast moving averages (EMAS) of 9 and 21 periods on various time frames indicate when the asset crosses up or down. For example, if the 9-period average crosses above the 21-period average, it is a good indication that the asset will rise; this is widely used by scalpers to enter quick trades. Moreover, they can experience opening a 30m, 3 or 4-hour, and daily chart, placing these fast averages and observing the differences across different time frames.
For instance, suppose you want to enter a trade on the daily time frame, then you go to a shorter time frame like 4 hours and observe the behavior of the averages, this is of course combined with RSI and volume.
In the case of long averages, such as 50 and 200 periods, if on the daily the asset is above both averages, it means it is in an uptrend, and if it is also above on the weekly, we continue in an uptrend. However, if the asset is below them, it indicates a downtrend.
But that's not all; for example, the asset may have the 50-day average below the price and the 200-day average above, just as the 50-day average crosses below the 200-day average; this is called a death cross and can indicate a possible trend reversal in the short to medium term. Conversely, we call it a golden cross when the 50-day average crosses above the 200-day average. Since these are lagging averages because they reflect past times, they always come with a delay, so you should use shorter time frames to see where they are.
The price of assets tends to always visit the averages when coming out of a bullish period.
In the case of #FET, it is currently on the daily approaching the 50-day average, which acts as a resistance; if it passes it, the asset continues its rise.
It is very rewarding to study this and various concepts; do not be confused thinking that it is a lot and you don’t know where to start.
Bless you, brothers 🙏