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Moving Average
Trend-following smoothing tool for price analysis.
Beginner-friendly explanation
A moving average is a line on a chart that shows the overall trend by smoothing price data. Example: If the moving average is rising, it may indicate an uptrend.
Intermediate-level insight
The moving average calculates the average price over a period (e.g., 20 days). There are simple (SMA) and exponential (EMA) versions. Example: A 50-day moving average acting as support on BTC shows trend strength.
Advanced perspective
Moving averages are used in dynamic systems: crossovers, trailing stops, confluence zones. They filter noise and optimize entries/exits. Example: An algorithm enters trades when price crosses the 200 EMA along with rising volume.
Technical & Chart Analysis
moving average, trend, SMA, EMA, dynamic support, smoothing, indicator
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