Class 2: Learn with me about moving averages (MA) and their importance in cryptocurrency trading. **7, 25 and 99 MAs** are technical analysis tools that help smooth price action and identify trends by averaging the price of an asset over a specific number of days.
- **7-day MA**: This is a short-term moving average that reflects the most recent price changes and reacts quickly to daily price action. It is useful for identifying short-term trends and possible entry or exit points for active traders.
- **25-day MA**: Represents an intermediate perspective. Being less sensitive to daily movements than the 7 MA, it helps identify more established trends without the noise of short-term fluctuations.
- **99-day MA**: This long-term moving average is valuable for understanding the overall market trend. Due to its broad time frame, it is less affected by daily variations and is considered an indicator of the long-term health of an asset.
Moving averages are essential for traders because they provide a clear view of market direction and can be points of support or resistance. By combining them, traders can gain a holistic view of price action and make informed decisions based on multiple time perspectives.