Moving averages help identify trends and potential entry or exit points. The most commonly used are:
đ MA (Moving Average): Averages the prices over a specific period, useful for seeing the overall trend. đ EMA (Exponential Moving Average): Gives more weight to recent prices, reacting faster to changes.
đ Key intervals: â MA (7, 25, 99) â To identify trends in different time frames. â EMA (7, 25, 99) â For a faster response to price changes.
đ How to interpret them: âď¸ When the price is above the averages, it may indicate an uptrend. âď¸ When it is below, it may indicate a downtrend. âď¸ Crossings between averages can signal trend changes (example: golden cross and death cross).
đŹ Do you use moving averages in your strategy? How do you set them up?
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If you've ever wondered how to know where the price might bounce, hereâs a simple 3-step method:
1ď¸âŁ 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. 2ď¸âŁ Draw lines or zones at those levels. Don't obsess over millimeter precision; what matters is the price reaction. 3ď¸âŁ Use them as a reference. If the price approaches one of these zones, observe what it does before entering a trade.
đš 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 ariseđŞđź
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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.
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