Day 8/20

Understanding Moving Averages

Today I focused on learning about Moving Averages, one of the most commonly used indicators in technical analysis.

A moving average helps smooth out price data and makes it easier to see the overall trend.

Two of the most common ones traders watch are:

• 50 Moving Average – shows the medium-term trend

• 200 Moving Average – shows the long-term trend

When the shorter moving average crosses above the longer one, it can signal bullish momentum.

When it crosses below, it can signal bearish momentum.

Many traders use moving averages to help confirm trends when analyzing coins like Bitcoin and Ethereum.$BTC $ETH

While studying charts, I’m starting to see how these indicators can help traders avoid entering trades against the trend.