The most popular trading strategies associated with the SMA indicator involve so-called “crossovers” such as the Golden Cross and Death Cross. Setting Up a Simple Moving Average for Crypto-Trading. To avoid cluttering the chart, most traders use just two. The most popular trading strategies associated with the SMA indicator involve so-called “crossovers” such as the Golden Cross and Death Cross. Another technical analysis tool for crypto currencies and moving averages for crypto trading technical analysis in general, in order to simplify trend recognition, is called moving averages. Since cryptocurrencies tend to be particularly volatile, you can also use them to ignore the ordinary price dips or highs.
A Golden Cross is a bullish signal that occurs when a short-term moving average crosses above a long-term moving average. You can see how MA’s can give you information about market states by looking at the Alligator trading strategy that I posted a while ago..Beginners Guide to Trading Moving Averages for the Crypto Market. It is the average value of the closing moving averages for crypto trading prices of a cryptocurrency over a specific period of time Hence, we must use some more indicators, such as trading volume, to identify the trend. All moving averages are lagging indicators however when used correctly, can help frame the market for a trader. Read CoinDesk’s full set of guides. Moving average crosses are a popular trading signal.