📚 Trading lessons from scratch
📘 Lesson eight: How to use moving averages (MA)?
Is the price trending up or down? Moving averages help you read the trend instead of guessing.
1️⃣ What is a moving average?
It is a line on the chart that calculates the average price over a specified number of candles and helps clarify the market trend.
2️⃣ The most popular moving averages:
- MA 20: To monitor the short-term trend.
- MA 50: To monitor the medium-term trend.
- MA 200: To assess the long-term trend.
3️⃣ How do you read the signals?
- Price above the moving averages: May indicate a strong upward trend.
- Price below the moving averages: May indicate that the downward trend is in control.
- MA 50 crossing above MA 200: Known as the golden cross; it may signal an improving trend.
- MA 50 crossing below MA 200: Known as the death cross; it may signal a weakening trend.
4️⃣ How can you use them in trading?
Don’t buy just because the price touches a moving average; wait for confirmation of a bounce or breakout, and monitor trading volume and the market trend.
🎯 Practical exercise: Open the BTC chart on Binance, add MA 20, MA 50, and MA 200, then observe where the price is relative to them.
📌 Remember: Moving averages are lagging indicators, not tools for reliably predicting the future.
📖 Lesson nine: How to use the RSI indicator to identify overbought and oversold conditions?
$BTC
#Binance #تعلم_التداول #التحليل_الفني
📘 Lesson eight: How to use moving averages (MA)?
Is the price trending up or down? Moving averages help you read the trend instead of guessing.
1️⃣ What is a moving average?
It is a line on the chart that calculates the average price over a specified number of candles and helps clarify the market trend.
2️⃣ The most popular moving averages:
- MA 20: To monitor the short-term trend.
- MA 50: To monitor the medium-term trend.
- MA 200: To assess the long-term trend.
3️⃣ How do you read the signals?
- Price above the moving averages: May indicate a strong upward trend.
- Price below the moving averages: May indicate that the downward trend is in control.
- MA 50 crossing above MA 200: Known as the golden cross; it may signal an improving trend.
- MA 50 crossing below MA 200: Known as the death cross; it may signal a weakening trend.
4️⃣ How can you use them in trading?
Don’t buy just because the price touches a moving average; wait for confirmation of a bounce or breakout, and monitor trading volume and the market trend.
🎯 Practical exercise: Open the BTC chart on Binance, add MA 20, MA 50, and MA 200, then observe where the price is relative to them.
📌 Remember: Moving averages are lagging indicators, not tools for reliably predicting the future.
📖 Lesson nine: How to use the RSI indicator to identify overbought and oversold conditions?
$BTC
#Binance #تعلم_التداول #التحليل_الفني