Market Notes｜$BULLA ｜Daily close above MA50｜MA50 0.08133
First, a definition: the moving average’s own slope is just as important. Price crossing above it while the average is still trending downward is not the same as holding above it after the average starts turning upward.
Next, how to read it: when price is too far from a long-term moving average, it is often considered likely to revert toward the average. However, when the trend is very strong, this divergence can persist for quite a long time.
If you’re using leverage, keep plenty of margin so a single sharp swing doesn’t liquidate your position.
First, a definition: the moving average’s own slope is just as important. Price crossing above it while the average is still trending downward is not the same as holding above it after the average starts turning upward.
Next, how to read it: when price is too far from a long-term moving average, it is often considered likely to revert toward the average. However, when the trend is very strong, this divergence can persist for quite a long time.
If you’re using leverage, keep plenty of margin so a single sharp swing doesn’t liquidate your position.