Analysis of Moving Average Indicator

Bitcoin Crypto Trend Identification

The bitcoin moving average technical indicator can be used as an technical indicator for generating cryptocurrency trading signals. A buy or sell crypto signal is generated when btcusd crypto price either moves above or below the Moving Average, respectively.

If the Moving Average is heading upward in diagonal manner then the general bitcoin trend is upwards.

If the on the other hand the Moving Average is moving downward in diagonal manner then the general bitcoin trend is downward.

Bullish Bitcoin Crypto Currency Trend

If the Moving Average is heading up, then the bitcoin crypto currency trend is upward & the bitcoin crypto currency signal generated is a buy bitcoin crypto currency signal.

As long as the bitcoin price is above the Moving Average - then the bitcoin trend will remain as an upwards trend. The Moving Average will act as a 'support zone' and bitcoin price action of the bitcoin candlesticks should not close below the Moving Average Indicator.

Buy Bitcoin Crypto Currency Signal

When the bitcoin price moves above the Moving Average and closes above the moving average indicator - a buy bitcoin trade signal is generated.

Bitcoin Crypto Currency Traders, who want to confirm the bitcoin crypto currency trading signal before trading, should wait until the Moving Average line turns and starts to move in an upwards bitcoin trend direction. It's always best to wait for the confirmation signal to reduce odds of a bitcoin crypto currency whipsaw.

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Bearish BTC USD Crypto Trend

If the Moving Average is heading down, then the bitcoin trend is downwards & the bitcoin trading signal generated is a sell bitcoin signal.

As long as the bitcoin price is below the Moving Average then the bitcoin trend will remain as down ward bearish trend. The MA will act as a "resistance area" and bitcoin price action of bitcoin candlesticks should not close above the Moving Average.

Sell BTCUSD Crypto Currency Signal

When the bitcoin price moves below the Moving Average and closes below the moving average - a sell bitcoin trade signal is generated.

Traders who want to confirm the bitcoin signal should wait until the Moving Average line turns and starts to move in a downwards direction. This will reduce the chance of trading a bitcoin crypto fake out.

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Range Market signals

Range Market signals can also be identified using the Moving Average Bitcoin Indicator.

MA Cross-over System Strategy

The MA cross over bitcoin trading strategy is also another signal generation strategy that is popular among btcusd crypto traders compared to the above signal generation method. Moving average cross over bitcoin trading strategy is also the simplest form of a bitcoin trading system widely used by traders. This Moving Average crossover bitcoin trading strategy is combined with other technical indicators to develop more complex bitcoin strategies.

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