Technical Analysis of Moving Average Crypto Indicator
BTCUSD Trend Identification
The bitcoin trading moving average technical indicator can be used as an technical indicator for generating cryptocurrency trading signals. A buy or sell cryptocurrency signal is generated when bitcoin trading price either moves above or below the moving average, respectively.
If the Moving Average is heading upwards in diagonal manner then the general cryptocurrency trading market trend is upward.
If the on the other hand the Moving Average is heading downwards in diagonal manner then the general cryptocurrency trading market trend is downwards.
Upward Bitcoin Trend/Bullish Trend
If the Moving Average is moving up, then the bitcoin trend is upward & the signal generated is a buy/bullish bitcoin trade signal.
As long as the bitcoin trading price is above the moving average then the bitcoin trend will remain as an upward trend. The moving average will act as a 'support level' & bitcoin trading price action of the cryptocurrency chart candlesticks should not close below the Moving Average.
Buy Trading Signal
When the bitcoin trading price moves above the Moving Average and closes above the moving average, a buy trade signal is generated.
Bitcoin Traders, who want to confirm the bitcoin trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an upward bitcoin trend direction. It's always best to wait for the confirmation cryptocurrency signal so as to reduce chances of a bitcoin trading whipsaw.
How to Day Trade Bitcoin: A Detailed Guide to Day Trade Strategies
Downward Bitcoin Trend/Bearish Market
If the Moving Average is moving down, then the bitcoin trend is downwards and the signal generated is a sell/short bitcoin trade signal.
As long as the bitcoin trading price is below the Moving Average then the bitcoin trend will remain as a downward bearish Bitcoin trend. The Moving Average will act as a "resistance level" and bitcoin trading price action of candlesticks should not close above the Moving Average.
Sell Trading Signal
When the bitcoin trading price moves below the Moving Average and closes below the moving average, a sell trade signal is generated.
Traders who want to confirm the cryptocurrency signal should wait until the Moving Average line turns and starts to move in a downwards direction. This will reduce the chance of trading a bitcoin trading whipsaw.
Downward Bitcoin Trend - How to Day Trade Bitcoin: A Detailed Guide to Day Trade Strategies
Bitcoin Range Market signals
Range Bitcoin Market signals can also be identified using the Moving Average Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another cryptocurrency signal generation strategy that is more favored by traders compared to the above cryptocurrency signal generation strategy method. Moving average crossover bitcoin trading strategy is also the simplest form of a bitcoin trading system widely used by online cryptocurrency traders. This Moving Average crossover method is combined with other technical indicators to form more complex bitcoin trading systems & trading strategies.
