$ETH The daily chart is above MA50 (2557.74), but the current price of 2556.46 has fallen back below the moving average. 24h +2.27%.
Hey everyone, how should we read moving averages? Here’s the short version 👇
There are two types of moving averages: simple and exponential. MA usually refers to the simple moving average, where each candlestick is weighted equally; EMA gives more weight to recent prices.
An intraday move above the average and a close holding above it are two different things: it’s more convincing if the price is still on the other side of the moving average after the daily candle closes.
Corroborating signals from multiple data points are more reliable than looking at just one, but even a large number of signals can’t provide certainty.
#ETH
Hey everyone, how should we read moving averages? Here’s the short version 👇
There are two types of moving averages: simple and exponential. MA usually refers to the simple moving average, where each candlestick is weighted equally; EMA gives more weight to recent prices.
An intraday move above the average and a close holding above it are two different things: it’s more convincing if the price is still on the other side of the moving average after the daily candle closes.
Corroborating signals from multiple data points are more reliable than looking at just one, but even a large number of signals can’t provide certainty.
#ETH