Moving averages help identify trends and potential entry or exit points. The most commonly used are:
📌 MA (Moving Average): Averages the prices over a specific period, useful for seeing the overall trend. 📌 EMA (Exponential Moving Average): Gives more weight to recent prices, reacting faster to changes.
📊 Key intervals: ✅ MA (7, 25, 99) – To identify trends in different time frames. ✅ EMA (7, 25, 99) – For a faster response to price changes.
📈 How to interpret them: ✔️ When the price is above the averages, it may indicate an uptrend. ✔️ When it is below, it may indicate a downtrend. ✔️ Crossings between averages can signal trend changes (example: golden cross and death cross).
💬 Do you use moving averages in your strategy? How do you set them up?
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Bullish
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If you've ever wondered how to know where the price might bounce, here’s a simple 3-step method:
1️⃣ Look at the chart and find areas where the price has bounced several times. It doesn't have to be exact; just identify the key areas. 2️⃣ Draw lines or zones at those levels. Don't obsess over millimeter precision; what matters is the price reaction. 3️⃣ Use them as a reference. If the price approaches one of these zones, observe what it does before entering a trade.
🔹 KEY FACT: When a support is broken, it often becomes resistance (and vice versa). That can give you clues about what the price will do.
If you're learning, try doing this on a chart and send me the picture if questions arise💪🏼
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Because in the 6h period there are 1h:13 minutes left for the candle to close. And for the 4h candle to close, there are 3 hours left. It's logical. More 4-hour candles close in a day than 6-hour candles.