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Moving Average Bitcoin Methods

About the MA Moving Average Trading Strategy

Bitcoin moving average ranks high among tools. It's straightforward and user-friendly.

This particular Bitcoin Indicator serves as a trend-following technical tool employed by those trading bitcoin for three distinct purposes:

  • Identify the beginning of a new trend
  • Measure the sustainability of new bitcoin trend
  • Identify the ending of a bitcoin trend & signal a reversal bitcoin signal

The BTC/USD Crypto Moving Average, or Bitcoin Moving Average, serves the function of dampening the market volatility inherent in Bitcoin's price fluctuations. This MA functions as an overlay indicator, positioned directly atop or superimposed upon the Bitcoin price chart.

On the example cryptocurrency chart below the blue line represents a 15 period Moving Average, which acts to smooth the volatility of bitcoin price action.

Bitcoin MA Technical Bitcoin Indicator - Moving Average Strategy

Bitcoin MA Technical Crypto Currency Indicator - MT4 Chart Indicators

Calculation of the Moving Averages(MA)

The Crypto Moving Average, also referred to as Moving Average, is computed by averaging the bitcoin prices based on the latest available data.

If the MA uses the number 10 to figure out the average bitcoin price, then it's called a 10-period bitcoin trading moving average, because most traders use the day as the normal bitcoin price period, so we'll just call it the 10-day Moving Average.

To find the ten-day moving average for bitcoin, average the last ten days' prices. Update it after each new price period. Recalculate using the latest ten periods. That's why it's moving - it changes with fresh bitcoin data.

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