📊 Understanding Trends through Moving Averages
MA7 – MA25 – MA99
To understand price movement correctly, it is not enough to look at candles alone; one must understand the relationship between moving averages as they reflect trader behavior over different time frames.
🔹 MA7 – Instant Momentum
Represents rapid price movement (speculators).
When the price is above MA7 → Positive short-term momentum.
Breaking below it → The first sign of weakness, but it does not alone indicate a trend reversal.
🔹 MA25 – Short to Medium Trend
Reflects market balance in the near term.
When the price moves between MA7 and MA25 → Often a phase of fluctuation or correction.
A stable break below MA25 → The market begins to change its behavior, not its final decision.
🔹 MA99 – True Trend
This is the basic trend line.
Staying below MA99 means that the market is still in:
A pressure phase
Or distribution
Or building a bottom
Any rise below MA99 is often a temporary rebound and not a true upward trend.
🧠 The relationship between them is key:
MA7 above MA25 and above MA99 → Healthy upward trend.
MA7 crosses downwards with MA25 while the price is below MA99 → Selling pressure.
The three overlapping → Fluctuating market, decision is absent, and liquidity is watching.
📌 Summary:
Averages do not predict, but they:
Reveal who is in control (speculator or investor)
And tell you whether the current movement is real or an optical illusion.
The trend does not announce itself with a single candle, but through a clear relationship between the averages.
