๐ BINANCE FOR BEGINNERS โ LESSON 9
๐ MOVING AVERAGES (MA)
Today we learn one of the basic indicators used to understand the direction of a crypto market.
1๏ธโฃ What is a Moving Average?
A Moving Average (MA) calculates the average price over a selected number of periods.
For example:
MA 7 โ average price over the last 7 periods.
MA 25 โ average price over the last 25 periods.
MA 50 โ average price over the last 50 periods.
2๏ธโฃ How to Read It
๐ Price above the MA
โ The market may be showing upward momentum.
๐ Price below the MA
โ The market may be showing downward momentum.
โก๏ธ But an MA is not a guarantee that price will rise or fall.
3๏ธโฃ Short vs Long Moving Average
A shorter MA reacts faster to price changes.
A longer MA moves more slowly and can help show the broader trend.
Example:
MA 7 โ faster
MA 25 โ slower
4๏ธโฃ Binance Practice ๐ฑ
Open BTC/USDT on Binance.
Go to:
Chart โ Indicators โ Moving Average
Add MA 7 and MA 25.
Observe:
Where price is relative to the MAs
Which MA is moving faster
Whether the market appears to be trending or moving sideways
๐ฏ LESSON 9 TASK
Don't buy or sell yet.
Write down:
BTC/USDT
โข MA 7: ______
โข MA 25: ______
โข Price: ______
โข Current observation: Uptrend / Downtrend / Sideways
Next lesson: ๐ RSI โ learning how to identify overbought and oversold conditions.
๐ MOVING AVERAGES (MA)
Today we learn one of the basic indicators used to understand the direction of a crypto market.
1๏ธโฃ What is a Moving Average?
A Moving Average (MA) calculates the average price over a selected number of periods.
For example:
MA 7 โ average price over the last 7 periods.
MA 25 โ average price over the last 25 periods.
MA 50 โ average price over the last 50 periods.
2๏ธโฃ How to Read It
๐ Price above the MA
โ The market may be showing upward momentum.
๐ Price below the MA
โ The market may be showing downward momentum.
โก๏ธ But an MA is not a guarantee that price will rise or fall.
3๏ธโฃ Short vs Long Moving Average
A shorter MA reacts faster to price changes.
A longer MA moves more slowly and can help show the broader trend.
Example:
MA 7 โ faster
MA 25 โ slower
4๏ธโฃ Binance Practice ๐ฑ
Open BTC/USDT on Binance.
Go to:
Chart โ Indicators โ Moving Average
Add MA 7 and MA 25.
Observe:
Where price is relative to the MAs
Which MA is moving faster
Whether the market appears to be trending or moving sideways
๐ฏ LESSON 9 TASK
Don't buy or sell yet.
Write down:
BTC/USDT
โข MA 7: ______
โข MA 25: ______
โข Price: ______
โข Current observation: Uptrend / Downtrend / Sideways
Next lesson: ๐ RSI โ learning how to identify overbought and oversold conditions.