Moving Average Support and Resistance Levels
Moving Averages can be used as points of support and resistance on charts.
When price reaches the moving average, the Moving Average level can act as a point of support or resistance for the price.
Buy Signal
If price is on an upward trend & starts to retrace, then most traders might wait to buy at a better price when the price hits a support level. Traders will sometimes use the Moving Average to determine the support level.
A buy cryptocurrency signal is generated when price hits the Moving Average, turns and starts moving in the upward trend direction. The signal is confirmed when price closes above the Moving Average. Because many traders use the moving averages to generate trading signals, price will normally react to these levels.
A stop-loss should be set just below the Moving Average Indicator. Ideally it should be set a few pips below the previous low.
How to Trade Bitcoin with Moving Average Strategy
Sell Trading Signal
If the price is on a downward trend & starts to retrace, then most traders might wait to sell at a better price when the price hits a resistance level. Traders will sometimes use the Moving Average to determine the resistance level.
A sell signal is generated when price hits the Moving Average, turns and starts moving in the downward trend direction. The signal is confirmed when price closes below the Moving Average. Because many traders use the moving averages to generate cryptocurrency trading signals, price will normally react to these levels.
A stoploss should be set just above the bitcoin trading moving average indicator. Ideally it should be set a few pips above the previous high.
Sell Bitcoin Signal - How to Trade Bitcoin with Moving Average Strategy
Resistance Level turns Support Level
In Bitcoin Trading - When a resistance level is broken it turns into support and vice versa.
This happens when the fundamentals of a trend change and consequently the direction of bitcoin crypto. Direction change is reflected by the moving average technical indicator, the direction is confirmed when resistance zone turns into support area or vice versa (when support area turns into resistance level)
Resistance Level turns Support Level - Moving Average Bitcoin Strategy Example
