Analysis of MA Crypto Indicator
BTCUSD Trend Identification
The bitcoin trading moving average technical indicator can be used as an technical indicator for generating signals. A buy or sell cryptocurrency signal is generated when bitcoin price either moves above or below the Moving Average, respectively.
If the Moving Average is heading upwards in diagonal manner then the general market trend is upward.
If the on the other hand the Moving Average is heading downwards in diagonal manner then the general market trend is downward.
Upwards Bitcoin Trend/Bullish Trend
If the Moving Average is heading up, then the bitcoin trend is upward & the signal generated is a buy/bullish bitcoin trade signal.
As long as the bitcoin price is above the moving average then the bitcoin trend will remain as an up-ward trend. The Moving Average will act as a 'support level' and bitcoin price action of chart candlesticks should not close below the Moving Average.
Buy Signal
When the bitcoin price moves above the Moving Average and closes above the moving average, a buy bitcoin trade signal is generated.
Bitcoin Traders, who want to confirm the bitcoin trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an up-ward bitcoin trend direction. It's always best to wait for the confirmation signal to reduce odds of a bitcoin whipsaw.
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Downward Bitcoin Trend/Bearish Market
If the Moving Average is heading down, then the bitcoin trend is downwards & the signal generated is a sell/short bitcoin trade signal.
As long as the bitcoin price is below the MA then the bitcoin trend will remain as a downward bearish Bitcoin trend. The Moving Average will act as a "resistance level" & bitcoin price action of candlesticks should not close above the MA.
Sell Signal
When the bitcoin price moves below the Moving Average and closes below the moving average, a sell bitcoin trade signal is generated.
Those who want to confirm the signal should wait until the Moving Average line turns and starts to move in a downwards direction. This will minimize the chance of trading a bitcoin whipsaw.
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Bitcoin Range Market signals
Range Bitcoin Market signals can also be identified using the MA Bitcoin Indicator.
MA Crossover Strategy Method Strategy
The moving average crossover method is also another signal generation strategy that is more favored by bitcoin traders compared to the above signal generation strategy method. Moving average crossover bitcoin strategy is also the simplest form of a bitcoin system widely used by online traders. This Moving Average crossover method is combined with other technical indicators to form more complex bitcoin systems & bitcoin strategies.
