Guide for traders

Moving averages are one of the oldest tools of technical analysis and is a popular method of identifying and taking advantage of trends. The Moving Average is an average of a moving set of values, calculated for a specific number of days. It facilitates the visualization of market trends as it eliminates - or at least it minimizes - the daily statistical noise. There are several types of Moving Averages, but we will examine three of them: The Simple Moving Average (SMA), the Weighted Moving Average (WMA) and the Exponential Moving Average (EMA).

* Note: Unlike classic stock exchanges and Forex, digital currency purchases take place 24 hours a day and 7 days a week - they are never closed. When we refer to closing prices, we are actually referring to a price that has taken place at a given time, and which is defined by us. For ease of reference, it is a good idea to use either at 12:00am or 12:00pm, so that we can always have the same measure of comparison as regards price and transaction volumes.

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