Today is July 5th. It's been 5 days since I started this journal, and one thing I notice is that I don't always know what to focus on, but a question or a comment from someone changes that.
Today, thanks to a comment, I learned something new about moving average crosses.
And since I was researching graphs, I also wanted to understand two words that I always read and never had clear:
"support" and "resistance."
What happens when moving averages cross?
A short moving average (like the 7-day one) moves faster than a long one (like the 25 or 99).
And when they cross, some see it as a signal.
📈 If the fast line crosses upwards to the slow one ➜ it may be a sign of a rise.
That's called a golden cross.
📉 If it crosses downwards ➜ it may be a sign of a drop.
That's called a death cross.
It's not a guarantee of anything, but many use it to read the trend instead of being carried away by emotion.
What are support and resistance?
I explain it as I understood it, without difficult words:
Support: it is an area of the chart where the price "bounces" upwards. Like a floor.
Resistance: it is where the price hits and goes down. Like a ceiling.
For example: if Bitcoin drops and repeatedly bounces at $60,000, that area is called support.
If it rises and fails to break above $63,000, that would be resistance.
The crazy thing is that if it breaks a resistance strongly, sometimes that becomes a new support.
The important thing is not to predict. It is to understand what you see and not to enter the market just by intuition.
I used to only see lines going up and down. Now I’m starting to notice that there is meaning in how they move.
Thanks to those who comment
Luis 77 left me a question that made me research. I like this.
I don't feel like an expert, but I'm becoming curious. And that makes me learn better than before.
#DIA5 #OneBigBeautifulBill #BTCWhaleMovement #SpotVSFuturesStrategy $BTC #CriptoDesdeCero
