How to Choose a Bitcoin Moving Average to Trade With

MA Leading CryptoCurrency Indicators

A trader can choose a moving average based on the crypto chart time frame that he is trading: the online trader might choose to use this Moving Average indicator onto the minute trading charts, hourly trading charts, daily crypto charts or even weekly bitcoin charts.

The bitcoin trader can also choose to average the closing bitcoin price, opening bitcoin price or median bitcoin price.

Moving average btcusd indicator is a oftenly used indicator to measure strength of bitcoin trends. Data is precise & its output which is a moving line can be customized to a bitcoin trader's preferences.

Using the btcusd moving average is one of the basic ways to generate cryptocurrency buy & sell signals which are used to trade in direction of btcusd crypto trend, since the Moving Average is a lagging indicator & a bitcoin trend following technical indicator - this means that it tends to give late crypto entry signals as opposed to leading cryptocurrency indicators. However, as a lagging cryptocurrency indicator it generates more accurate signals & is less prone to fake out whipsaw signals compared to leading cryptocurrency indicators.

Bitcoin Traders select the moving average period to use depending on the type of bitcoin trading they do: short term bitcoin trading, medium term trading and long term trading.

Short-term bitcoin trading: 10 - 50 Moving Average Period
Medium-term bitcoin trading: 50 - 100 Moving Average Period
Long-term bitcoin trading: 100 - 200 Moving Average Period

The bitcoin price period in this case can be measured in minute charts, hourly trading charts, daily crypto charts or even weekly charts. For our example we will use 1 hour crypto time-frame period.

Short-term bitcoin moving averages are sensitive to bitcoin price action & can spot bitcoin trends signals faster than the long term moving averages. Shorter term moving averages are also more prone to fake out whipsaw signals compared and analyzed to long-term moving averages and a btc usd trader should choose a bitcoin price period that will generate a signal early but not give too many bitcoin whipsaws.

Longterm bitcoin trading moving averages help avoid bitcoin whipsaws, but are slower in spotting new bitcoin trends and bitcoin trend reversals.

Because long-term moving averages calculate average using more bitcoin price data, it doesn't reverse as fast as a short term bitcoin trading moving average & it's slow to catch the changes in the trend. However, the longer term btcusd moving average is better when the trend stays in force for a longer time but may also give late bitcoin signals.

The work of a trader is to find a moving average period that will spot bitcoin trends as early as possible while at the same time avoiding fake-out signals (bitcoin whipsaws).

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How to Choose a Bitcoin Moving Average to Trade With

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