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- Moving averages is an indicator which simplifys price data and ‘smoothens’ the noise, so that a single smooth line is created.
It responds quickest to the price change with the 21 day period.
<p style=”text-align: left;”>If the price goes above the Moving avaerage it is a bullish trend if it goes below it is bearish.</p>
<p style=”text-align: center;”></p><p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>It is the trend line taken from the average price for the period selected.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>when the price goes above the MA the trend ,it is is considered as bullish, and when it goes below the MA it is considered as bearish.</p>Moving average is an trend indicator based upon if the current price is above the MA its bullish if its below the MA its bearish data taken for consideration for short position is one month if for long position its above 180 days.
Moving average is an indicator based on the price movement over the period of 21 days. Its a smooth curve line overlayed on the chart to easily identify the trend with respect to this indicator.
This works well with trending zone.
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