#TradingCommunity #tradingtechnique #TrendingTopic #TradingSignals #MovingAverages
Moving Averages (MA)
👈Objective: Identify the overall trend and smooth price fluctuations.
👈How it works: Calculates the average price over a specified time period (like 50 days, 200 days).
Main types:
🚀Simple Moving Average (SMA): Direct arithmetic average of prices.
🚀Exponential Moving Average (EMA): Gives more weight to recent prices (faster in detecting changes).
How to use:
👆Uptrend: When the price is above the moving average.
👇Downtrend: When the price is below the moving average.
🤷Moving Average Crossovers: When the short average (like 50 days) crosses above the long average (like 200 days), it’s a bullish signal ("Golden Cross"); the opposite is a bearish signal ("Death Cross").
