Welcome to my first article about trading in the hive platform, i do hope this will enable us to learn more about cryptocurrency trading as time goes on. Without much of time wasting lets discuss the topic under review. Lets get started.
Moving Average Indicator
The moving average indicator is an indicator that gives traders signal about the current trend of an asset. Asset in the crypto world may either be bullish, bearish or in a range. The indicator helps us to spot this trend. We will will be discussing how this indicator can spot this trends in the paragraph below, stay tuned.
Uptrend (Bullish Movement)
In the crypto market, when the price of the asset is moving in an upward direction, we say the asset at that point in time is bullish. The moving average (MA) indicator is seen moving below the price action at this point in time. When this is noticed, the opportunity for buy entry is usually utilize by traders. See screenshot of bullish trend below.
In the crypto market, when the price of the asset is moving in an downward direction, we say the asset at that point in time is bearish. The moving average (MA) indicator is seen moving above the price action at this point in time. When this is noticed, the opportunity for sell entry is usually utilize by traders. See screenshot of bearish trend below.
In the crypto market, when the price of the asset is moving in a sideways direction, we say the asset at that point in time is in a range. The moving average (MA) indicator is seen moving within the price action. this is mostly seen in region of accumulation and distribution. See screenshot of bearish trend below.
Moving average indicator is one of the most used indicator as far as trading is concern. The reason for the much use of this indicator is because it is very easy to read and understand by even newbies in the crypto world. We have seen how the indicator identify various trend. As a trader, it is not advisable to use any indicator as a stand alone tool to make a trading decision and that is why we will be learning more technical analysis tools shortly which we can use to combine with the moving average indicator to make a better trading decision.
Finally, I want to sincerely appreciate all of you for your time and support, more about trading will be unfolded via my blog as time goes on. In the next class we will be talking about buying and selling signal using the MA indicator.
