🔥 How to Read the Market Using Two Moving Averages (Simple Explanation)
One of the most basic yet effective trend tools is the double moving average crossover.
The idea is simple:
we compare a short-term and a long-term moving average.
📈 Buy Signal
— the short-term MA crosses above the long-term MA
→ the market enters a growth phase
📉 Sell Signal
— the short-term MA crosses below the long-term MA
→ a downtrend begins
🧠 Popular Combinations
• 5 & 20 days — more sensitive, suitable for active markets
• 10 & 50 days — more conservative, better at filtering noise
⚖️ Important Nuance
This method is lagging — the signal doesn’t appear at the very start of a move.
But 👉 it reduces false entries and increases confidence that the trend is already established.
🎯 Alpha
Moving averages don’t catch exact tops or bottoms.
They help you stay in the move once the market has made its decision.
That’s why:
funds use them
systematic traders rely on them
they work especially well in the medium term
🚀 Looking ahead, as volatility increases, simple trend-following tools will become key again — especially for #BTC and major altcoins.
#bitcoin $BTC
89,749.09
+1.3%