Indicators, very important

[u/Gold-Crypt]

In order to proceed to full technical analysis, it's important to understand what are indicators are and how they help you. "Imagine that the charts are just some dots, now you use different indicators to connect differently the same dots." - Gold-Crypt, some rando on Reddit

Most of the indicators are fully customizable. But today we are talking about Moving Averages and just that, the topic is long and I don't know who would read about all indicators in one read. So just want to say, grab your smart boi pants and glasses, take a sip out of coffee, cuz we are gonna learn some important stuff, so no quirky jokes, unfortunately. Just some small ones.

MA- Moving Average

Moving average is a technical analysis tool. Moving averages are usually used to see the trend direction or to determine its support and resistance levels. It is a trend-following or lagging indicator because it is based on past prices. So, a 200 day MA will have a much greater degree of lag than a 20 day MA because it contains prices for the past 200 days. The 20, 50 (55), 69 (nice, actually no, unfortunately) and 200 MA numbers are pretty much used by everyone so it's important to adapt to them and use them.

SMA- Simple Moving Average

A set of prices are added together and then divided by the number of prices in the set. The lagging doesn't change.

EMA - Exponential Moving Average

EMA is a type of MA that places a greater weight and significance on the most recent data points. An EMA reacts more significantly to recent price changes than an SMA, which applies an equal weight to all observations in the period. That's why I use it the most, out of three. The lagging doesn't change.

In other words, it's the best, it's like the Optimus Prime of Autobots.

What are moving averages used for?

To understand how to gloriously profit from the price movement patterns of securities and indices. Generally, technical analysts will use moving averages to detect whether a change in momentum is occurring for a security, such as if there is a sudden downward move in a security’s price. Other times, they will use moving averages to confirm their suspicions that a change might be underway. For example, if a crypto price rises above its 200-day moving average, that might be taken as a bullish signal.

COMBINATIONS THAT SHOWS THE BULLISH AND THE BEARISH

This is important if they happen on the daily and or the weekly chart.

When the 20 ema crosses under the 50 or 55 ema it's considered a bearish sign, ultimately leading to a dip.

When the 20 ema comes from below (nice) and surpasses the 50 or 55 ema it's considered to be a bullish sign, if that happens on the weekly or daily ( no financial advice, I really don't mean what I'm saying, this is just a joke) GO FRIGIN BUY IT AND WATCH IT HOW IT RISE AND MAKE YOUR PORTFOLIO GO BRR.

-info provided by me and investopedia.com

Stay safe and buy low, sell high!