What moving averages do successful cryptocurrency day traders use?

3 answers

• Dec 27, 2021 · 3 years ago
  Successful cryptocurrency day traders often use a combination of different moving averages to make trading decisions. The most commonly used moving averages include the simple moving average (SMA) and the exponential moving average (EMA). These moving averages help traders identify trends and potential entry or exit points. For example, when the price of a cryptocurrency crosses above the moving average, it may signal a bullish trend and a potential buying opportunity. Conversely, when the price crosses below the moving average, it may indicate a bearish trend and a potential selling opportunity. Traders also use moving averages to confirm other technical indicators and to filter out noise in the market.
  713357
• Dec 27, 2021 · 3 years ago
  Successful day traders in the cryptocurrency market rely on moving averages to identify key support and resistance levels. By plotting different moving averages on their charts, traders can see where the price is likely to find support or encounter resistance. For example, if the price of a cryptocurrency is consistently bouncing off a specific moving average, it indicates strong support at that level. On the other hand, if the price is consistently being rejected at a certain moving average, it suggests strong resistance. These levels can be used to set stop-loss orders or take-profit targets.
  601201
• Dec 27, 2021 · 3 years ago
  According to a study conducted by BYDFi, successful cryptocurrency day traders often use the 50-day and 200-day moving averages. These moving averages are widely followed in the industry and are considered to be reliable indicators of long-term trends. When the price of a cryptocurrency crosses above the 50-day moving average, it is seen as a bullish signal. Similarly, when the price crosses above the 200-day moving average, it is considered an even stronger bullish signal. Traders often use these moving averages as confirmation of other technical indicators and to gauge the overall market sentiment.
  607152