Awesome, now that youâve learned about RSI, it's time to dive into the Moving Average (MA), one of the pillars of technical analysis and super practical.
The moving average smooths out random price fluctuations to show you the true market trend (bullish, bearish, sideways). It's like a "compass" that guides you on the general path.
đ What is the Moving Average (MA)?
Simply put, it's the average price of a specific asset over a set period (like 20 or 50 days). As a new period ends, a new price enters while the oldest price drops out, averaging and moving with the price.