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Bitcoin Trading Moving Averages

Bitcoin Trading Moving Averages

pBitcoin Trading Moving Averages last time we were looking the RSI the relative strength index which is a very powerful indicator since it tells us whether the market is overbought or oversold so we can get out take profit when its very overbought and buy when its oversold here were gonna look at the moving averages so we can just click on indicators pick moving averages and there are and theyre added we can then change the settings so if I lets click here I can change how many days I want to average over I can change what it is that Im averaging so here Im talking about the closing price I just take the price at the end of the day and average the last 20 days to get the 20day moving average Ive picked there 20 and 50 here because they seem to be significant so you can see here as the Bitcoin prices have been going up theyve always been above the 20 within with occasional dips but rare so its comforting its nice to know what the 20day moving average is because as I said most of the time it seems to stay above that in the rare times that it does dip below the 20 the 15 as been a strong support and likewise if we added the 10 that would probably just supporting all of these prizes so depending on whatever thing youre looking at you want to experiment around a bit see what does the 10 day look like what does the 50 are they important when it comes to this thing so thats how moving averages are helpful that once we found the relevant moving averages so expect for example if I go 20 seems to be good here I want to wait till the market is down to about the 20day moving average and by kinda like I could buy when the RSI was 30 or 40 depending on what instruments youre looking at so the 20 seems to be a good guide if the price is above the 20 I want to be long bitcoins and I can hold on to that and typically that has been the case so if Id bought it at about the 20 here when its above the 20 you want to be long and you would have been making more and more money and when it dips its always above it or its nearly always above the 20 whilst its in its bullish trend and nothing stays the same forever so we can see as time goes by you know here it dipped to 20 here at tip to 20 certainly or 20 is holding strongly when it picked up pace 10 would have been the most likely support here so what I can do here is this check that so first of all Im gonna yeah zoom in a bit Im just gonna make this into ten so we can see here that you know the twenty had been the support during the uptrend here but now when it accelerated suddenly the tan was holding these were probably along the five so you can you can add multiple different moving averages to see you know whats going on in this case when it fell it fell, it fell through the ten and It actually fell through the twenty so at this point you want youd want to go Ill wait maybe its just a its you know a little test where it dips below the twentyfour like for like ten minutes but you could also just go short once it goes below the 20 because 20 seems to be key Im just gonna make this back to fifty because thatll give a more longterm picture okay so weve just broken through the 20 it would probably want to test the 50 so maybe Id be thinking it I can still stay sort its gonna go down down down but basically and this is the 20 sorry this is the 20 week not 20 day so the 20 week is quite a long time period so if its broken below the 20 week then or even below the 10 week Id say then its up to now the market is bearish now the trend is down so without looking at anything you just likely just go short because every day were getting lower lows and lower highs its is falling and falling and falling Im just gonna look at the daily one again yeah so if we zoom into shorter time intervals it did we got a clearer picture at times or more a more detailed picture the weekly or monthly ones give a bigger picture a more trend it get more the big trend so if I look at this you can see the 20 the 10 are there its managing to occasionally touch the 20 here well before the 20 was you know if it just touched the 20 but it was nearly always above the 10 then this is the daily one it broke through the daily and broke through the tan then faced resistance at the 20 so that seems to be quite clear that you know the moving average is playing a role it is showing something so when it broke through here it is now trying to test the 20 in general xx held so a lot of people would be going when it dipped down to 20 Im gonna buy this because this is a good buying opportunity but then its smashed through the 20 and now we have the ten is below the 20 which is more bearish so at the moment the moving average indicators are bearish and if you follow the trend is your friend east want to be short bitcoins until the charts change so would I enter at this level its probably not a bad idea but youll probably get better one so Id want to wait till the RSI was maybe a bit better or like here you know when it was falling it will also test to see whether it how solid how solid this damn move is so you will get an opportunity to enter at a better level so here weve just had a move up to here you know the green candle there now its testing on the downside again itll probably break you know get a will get a new low low it might go down a little bit here but then it will try and test you know this 10 day moving average kind of level again another powerful tool is Fibonacci retracement so what that is is looking at moves like this and going the price it was say here it went all the way down here but well have a Fibonacci retracement where it will go maybe halfway between the high and the low or maybe like something like 23 so there are certain levels which the market tends to check so well have a look at that nextp

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