$AAVE broke below the MA200 on the daily chart (109.871), down 2.66% over 24h.
I used to confuse moving above a moving average with a golden cross. It took me a while to understand: the two are often mistaken for each other, but they’re not the same thing. Moving above a moving average compares the price with the moving average, while a golden cross looks at the positions of two moving averages of different lengths—for example, when the MA50 crosses above the MA200.
Whether there’s a surge in volume when the price moves above or below a moving average is also used as a signal: a cross on low volume is more likely to be just a brief test.
Don’t place an order at the very moment volatility is at its highest. Wait for the price to settle before taking a closer look.
Markets change fast, so don’t rush to conclusions.
I used to confuse moving above a moving average with a golden cross. It took me a while to understand: the two are often mistaken for each other, but they’re not the same thing. Moving above a moving average compares the price with the moving average, while a golden cross looks at the positions of two moving averages of different lengths—for example, when the MA50 crosses above the MA200.
Whether there’s a surge in volume when the price moves above or below a moving average is also used as a signal: a cross on low volume is more likely to be just a brief test.
Don’t place an order at the very moment volatility is at its highest. Wait for the price to settle before taking a closer look.
Markets change fast, so don’t rush to conclusions.