You are viewing a single comment's thread from:
RE: Coins that dont care of Todays Bloody Massacre on Altcoins Market
Always good to keep an eye on the SMAs.
It's possible that I'm wrong, but when you have an hourly chart as you have in your image, the SMAs for the hourly won't match the daily SMAs.
Here's my daily chart showing the current 200 SMA at ~1100 (the orange line):
https://www.tradingview.com/x/hTIKXsLn/
Would be happy to discuss more. I only have about a year of technical analysis under my belt at this point, and just started charting the cryptos, so I'm open to feedback.
Agree. Moving averages give us an idea about the short to long-term momentum within the market. For the hourly, I consider the 50 SMA to be the "short-term" moving average and the 200 SMA the long-term moving average. I always know to stay away from a trade if it's trading too far above the 50 SMA and I start to get a little suspicious if it goes too long without pulling in for a test of the 200. The SMAs also work great for signaling whether it's an opportune time to trade a breakout (from pattern or support/ resistance) or not.
You're right about the hourly and daily SMAs not matching. The number determines the "look-back" period, so the 200 SMA for the hourly accounts for the average of the last 200 hours while the daily accounts for the last 200 days.
Exactly. Thanks for the clarification. I think it helps those who may be newer to trading. I doubt we go right back to the 200 day SMA quickly, but could definitely see a bit of consolidation coming up allowing those SMAs to "catch up" a bit.
Happy trading!
Yes, in a strong bull market that would be the usual scenario for the 200 SMA test. We could form a symmetrical or ascending triangle (which bitcoin is famous for) allowing the 200 to catch up. The closer it gets, the more it supports a breakout of resistance.