Analysis of Exponential MA Technical Indicator
BTCUSD Crypto Currency Trend Identification
The bitcoin moving average technical indicator can be used as an technical indicator for generating trading signals. A buy or sell cryptocurrency signal is generated when bitcoin price either moves above or below the Exponential Moving Average moving average, respectively.
If the Exponential MA is moving upward in diagonal manner then the general bitcoin crypto currency trend is upwards.
If on the other hand Exponential Moving Average is moving downward in diagonal manner then the general bitcoin trend is downwards.
EMA Upward Bitcoin Trend
If the Exponential MA is moving up, then the bitcoin trend is upward & the cryptocurrency signal generated is a buy bitcoin signal.
As long as the bitcoin price is above the MA indicator - then the bitcoin trend will remain as an up-ward cryptocurrency trend. The Moving Average will act as a 'support zone' & bitcoin price action should not close below the Exponential Moving Average Cryptocurrency Indicator.
Buy Bitcoin Crypto Signal
When the bitcoin price moves above the Exponential Moving Average and closes above the moving average indicator - a buy bitcoin trade signal is generated.
BTCUSD Crypto Traders, who want to confirm the btcusd crypto trade signal before trading, should wait until the Exponential MA line turns & starts to move in an upwards btcusd crypto trend direction. It's always best to wait for the confirmation cryptocurrency signal to reduce odds of a bitcoin whipsaw.
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Bearish BTCUSD Crypto Currency Trend
If the Exponential MA is moving down, then the bitcoin trend is downwards and the cryptocurrency signal generated is a sell bitcoin signal.
As long as the bitcoin price is below the Exponential Moving Average then the bitcoin trend will remain as down ward cryptocurrency trend. The Exponential Moving Average will act as a "resistance level" and bitcoin price action should not close above the EMA.
Sell Bitcoin Crypto Currency Signal
When the bitcoin price moves below the Exponential Moving Average and closes below the moving average - a sell bitcoin trade signal is generated.
Those who want to confirm the cryptocurrency signal should wait til Exponential Moving Average line turns and starts to move in a downward direction. This will minimize the chance of trading a bitcoin crypto currency whipsaw.
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Range BTCUSD Trading signals
Range Bitcoin trading signals can also be identified using the Exponential Moving Average Indicator.
EMA Crossover Method Strategy
The Exponential Moving Average crossover bitcoin strategy also is another cryptocurrency signal generation strategy which's popular among bitcoin traders compared to the above cryptocurrency signal generation strategy. Moving average cross over bitcoin strategy is also the simplest form of a bitcoin system widely used by cryptocurrency traders. This Exponential MA crossover btcusd crypto strategy is combined with other indicators to develop more complex bitcoin crypto currency strategies.
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