$ETH ’s daily chart is above MA50 (2557.74), but the current price of 2556.45 has fallen back below the moving average. 24h: +2.22%.
Let’s use this figure to talk about moving averages.
Moving averages are calculated from prices that have already occurred, so they naturally lag behind. The longer the period, the smoother the moving average—and the slower it reacts.
Moving averages are useful for judging the overall direction, but not so good for pinpointing exact entry and exit points, since they’re always a step behind the price.
Leave yourself some room when using leverage, and don’t let a single wick spike liquidate your position.
Let’s use this figure to talk about moving averages.
Moving averages are calculated from prices that have already occurred, so they naturally lag behind. The longer the period, the smoother the moving average—and the slower it reacts.
Moving averages are useful for judging the overall direction, but not so good for pinpointing exact entry and exit points, since they’re always a step behind the price.
Leave yourself some room when using leverage, and don’t let a single wick spike liquidate your position.