Why we Use Moving Averages
Reason Is Three
1.Moving Averages Can help us to confirm Bullish vs Bearish vs Sideway Market.
2.A break through the 50 EMA can signal a possible trend change.
3.The 50 EMA can act as a form of Support or Resistance
Moving Average can help us to confirm Bullish vs Bearish vs Sideway Market
Downtrend Because Candle is below the Moving Average
50 EMA ABOVE THE PRICE.
Represents a Bearish market and a Downtrend
Market is uptrend because candle is above the Moving Average
50 EMA Below the Market that represents a Bullish Market and an Uptrend.
Market(candle) and Moving Averages touched each other at the same level.That why it is sideway condition of the market.
50 EMA going through price that represents a directionless sideway Market.
A break Through the 50 EMA can signal a possible trend change
Trend Changing Phenomenon
Trend change from a Downtrend to an Uptrend by breaking of 50 EMA.
Trend Changing Phenomenon
Trend Changing from Downtrend to an Uptrend by breaking of 50 EMA.
The 50 EMA can act as a form of Support and Resistance
Act as Support
During Uptrend of the market EMA act as support line.More touched more strong the support line.
Act as Resistance
During Downtrend it act as Resistance Line.More touches indicate more strong Resistance Line
One thought on “Why we Use Moving Averages”