Ever heard of the famous moving average?
Well, in this series of articles we’ll be going through what this is all about, how it's being calculated, why it's important, as well as 2 simple buy and sell strategies you can use to help you get started on that trading journey!
So, let’s say you’re on a fancy boat sailing and enjoying the crystal clear waters when all of a sudden you are surrounded by dark, angry clouds.
A terrible storm breaks, and as a result, the whole electric system collapses. What do you do besides holding on for dear life? Well, the only way to find your way back is with a compass. Old school!
You’re probably wondering what this has to do with trading or anything else for that matter. Well, the moving average is like a compass when you’re “exploring” the markets.
All you have to do, really, is attach it to the chart and “navigate” with more confidence.
Something you should know about the moving average is that it's a curving line.
When the current price is above the moving average then you may assume that the market is moving upward, and similarly, when the price is below the moving average then we can say the market is moving downwards.
Ready to see how it works?
Let’s go!
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