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How to use Moving Average (MA) in crypto trading

Formazione
BINANCE:ETHUSDT   Ethereum / TetherUS
Hello, traders!.

Today we will examine how Moving Average can be used as a tool in trading.

Moving Average is one of the most famous and popular coin filters.
The most straightforward application of MA:

  • 1) Defining the trend.

    Uptrend If MA is upward, downtrend if MA is downward.

  • 2) Determining the strength of the trend.

    The greater the deviation of price from the moving average, the stronger is the trend.

  • 3. Signal to buy or sell the asset.

    There are two cases that can be considered a buy signal:

    - Moving average price crossing from bottom to top;
    - The crossing of the lower MA of the older MA (for example, MA50 crosses MA100) from bottom to top.

    The opposite of two cases can be used as a sell signal :

    - Moving average price crosses from top to bottom;
    - The crossing of the lower MA of the older MA (e.g. MA50 crosses MA100) from top to bottom.

ETH/USDT

Above is the bright example of MA50+MA100 combination using H1 timeframe.

On the chart, MA50 is marked in green, and MA100 is black.

As a rule, the trend starts with small timeframes and then moves on to the older ones.

Here is another example using 4H timeframe for LINK/USDT

And finally, an example of working out the combination of MA50+MA100 on the 1D timeframe for LTC/USDT.

Hope this is going to be valuable for you!
Good luck and watch out for the market
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