âĄïžThe Moving Average takes the average closing prices of a coin for a chosen number of days and plots them on the chart.
đ°Types of MA:
đ»SMA (Simple Moving Average): Straightforward average of prices.
đ»EMA (Exponential Moving Average): Gives more weight to recent prices â reacts faster to market moves.
đ How to Use MA in Binance:
Trend Direction:
â Price above MA â bullish trend (buyers in control).
â Price below MA â bearish trend (sellers in control).
Support & Resistance:
đ€MA often acts like a âfloorâ (support) or âceilingâ (resistance).
âCrossovers (Golden/Death Cross):
âGolden Cross: Short-term MA (e.g., 50-day) crosses above long-term MA (e.g., 200-day) â strong buy signal.
âDeath Cross: Short-term MA crosses below long-term MA â strong sell signal.
đ Best for Beginners: Use EMA 9 & EMA 21 for short-term trades, or SMA 50 & SMA 200 for long-term trend following.
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