Do you want to reveal the market direction before it moves?
Stay with us in the technical indicators series and let us show you a simple yet very effective tool!
Moving Averages
Are one of the strongest tools used by professionals to determine trends and uncover opportunities.
What does moving average mean?
It is simply a line that calculates the average price over a specific period of time, and it helps you understand:
Is the market bullish? Or bearish? Or moving sideways?
Its main types:
1. SMA (Simple):
Calculates the average price indiscriminately, great for the overall trend.
2. EMA (Exponential):
Focuses more on recent prices, which is why it reacts quickly to changes.
How to use it?
If the price is above the average => the market may be bullish.
If the price is below the average => the market is likely bearish.
Crossing averages = entry or exit opportunity!
Famous example:
When EMA 50 crosses EMA 200 from below => Golden buy signal!
And the opposite is true => Exit warning.
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What's next? We might reveal an indicator that exposes overbought and oversold conditions!
Any guesses? Write to us in the comments!
