Bitcoin moving average

Investors have a special liking for the moving average in market analysis. Investors who know the basics know that there are many analysis indicators, but why do they prefer the moving average? let we discuss What exactly are the advantages of moving averages.

1. The trend is clear and intuitive

Compared with other indicators, intuitively giving investors a market trend is the biggest advantage of the moving average. So why does the trend line, which can also reflect the trend, have no such charm as a moving average? The original trend line software requires users to draw it by themselves, unlike the moving average, which can be automatically generated.

In this way, different investors face the same market situation. Due to the different drawing methods, the trend line drawing products must also be different, and the investment decisions made based on this may have a bipolar state. At this time, the advantages of the moving average are reflected. Because of the automatically generated attributes of the moving average, the time period and moving average parameters of any investor analysis are the same, and the icon presented to the investor is also a twin. no difference.

2. The trend reflects regularity

Observing the trend of the moving average, you can find that the upward, horizontal, and downward trends represent meanings that can be followed regularly. Moving average upward trend means that the market period of this period is upward; moving average downward trend means that the market period of this period is downward; if the moving average is horizontal, it means that the price has entered A horizontal finishing stage. To grasp the meaning behind various trends, it is very easy and convenient for investors to identify the market.

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Image for post

As shown in the figure, a 60-minute K-line diagram. It can be seen from the K-line chart that the price is in a staggered state of rise and fall, which can also be easily seen from the meandering 20-period moving average. However, if you look closely, the moving average is actually going down. According to the rules, it can be easily determined that the market in this period is downward, and the transaction volume is also in a state of stagnation.

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Digital Nomad

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