Analysis of Moving Average Indicator
Bitcoin Crypto Currency Trend Identification
The bitcoin moving average technical indicator can be used as an indicator for generating cryptocurrency signals. A buy or sell crypto signal is derived & generated when btcusd crypto price either moves above or below the Moving Average, respectively.
If the Moving Average is heading upward in diagonal manner then the general bitcoin trend is upwards.
If the on the other hand the Moving Average is moving downward in diagonal sort of manner then the general bitcoin trend is downward.
Bullish Bitcoin Crypto Currency Trend
If the Moving Average is heading up, then the bitcoin crypto trend is upward & the bitcoin signal generated is a buy bitcoin crypto signal.
As long as the bitcoin price is above the Moving Average - then the bitcoin trend will remain as an upwards trend. The Moving Average will act as a 'support zone' and bitcoin price action of the bitcoin candlesticks should not close below the Moving Average Indicator.
Buy Bitcoin Signal
When the bitcoin price moves above Moving Average and closes above the MA indicator - a buy bitcoin trade signal is generated.
Bitcoin Traders, that want to confirm the bitcoin trading signal before trading, should wait until the Moving Average line turns & begins to move in an upwards bitcoin trend direction. It's always best to wait out for the confirmation signal to reduce odds of a bitcoin whipsaw.
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Bearish BTC USD Crypto Trend
If the Moving Average is heading down, then the bitcoin trend is downwards & the bitcoin trading signal generated is a sell bitcoin signal.
As long as the bitcoin price is below the Moving Average then the bitcoin trend will remain as downward bearish trend. The MA will act as a "resistance area" and bitcoin price action of bitcoin candlesticks should not close above the Moving Average.
Sell BTC USD Crypto Signal
When the bitcoin price goes below the MA and closes below the MA - a sell bitcoin trade signal is generated.
Traders that want to confirm the bitcoin signal should wait until the Moving Average line turns & begins to move in a downwards direction. This will reduce the chance of trading a bitcoin crypto currency fake out.
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Range Market signals
Range Market signals can also be identified using the Moving Average Bitcoin Indicator.
MA Cross-over System Strategy
The MA Moving Average cross over trading strategy is also another signal generation strategy that is popular among bitcoin cryptocurrency traders compared to the above signal generation method. MA cross over bitcoin btcusd trading strategy is also the simplest form of a bitcoin trading system widely used by the traders. This Moving Average crossover bitcoin trading strategy is combined with other indicators to develop more complex btcusd strategies.
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