๐ Understanding Key Indicators on Binance: MA, MACD, DE, DEA, MB & DN
$ADA If you want to trade confidently on Binance, understanding technical indicators is a must. Hereโs a beginner-friendly breakdown of the most commonly used ones ๐
$SOL ๐น MA (Moving Average)
MA shows the average price over a specific period and helps identify the trend.
Price above MA โ Bullish trend
Price below MA โ Bearish trend
MA also works as dynamic support and resistance.
$BCH ๐น MACD (Moving Average Convergence Divergence)
MACD is a momentum indicator that shows trend strength and possible reversals.
๐ธ DE (DIFF)
DE is the difference between short-term and long-term EMAs.
DE above 0 โ Strong bullish momentum
DE below 0 โ Bearish momentum
๐ธ DEA (Signal Line)
DEA smooths DE and helps generate signals.
DE crossing above DEA โ Buy signal
DE crossing below DEA โ Sell signal
๐น Bollinger Bands (MB & DN)
These indicate volatility and price extremes.
๐ธ MB (Middle Band)
MB is the 20-period Moving Average and shows the marketโs balance point.
๐ธ DN (Down Band)
DN marks lower volatility zones and possible oversold areas, often acting as support.
๐ก Pro Tip:
Never rely on a single indicator. Combine MA for trend, MACD for momentum, and Bollinger Bands for volatility to improve accuracy.
๐ Smart trading is about confirmation, not prediction.
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