Have you heard about MA 50, MA 100, MA 200? They are just average prices over different periods — a tool without which half of the traders cannot make a move.
How it works:
MA 50 — price for the last 50 days, shows the current trend
MA 100 — average over 100 days, more stable signal
MA 200 — price for 200 days, main trend on the chart
The essence is simple: if the price is above the MA line — the market is rising (bullish trend), below the line — it falls (bearish). Charts become cleaner, noise decreases.
For example, if BTC has been trading above MA 200 for a month, it is a sign of a long-term upward trend. If it falls below, it may be a signal for a sell-off.
Traders use this to enter and exit positions. Simple, but effective.
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Moving Averages (MA): how traders read crypto charts
Have you heard about MA 50, MA 100, MA 200? They are just average prices over different periods — a tool without which half of the traders cannot make a move.
How it works:
The essence is simple: if the price is above the MA line — the market is rising (bullish trend), below the line — it falls (bearish). Charts become cleaner, noise decreases.
For example, if BTC has been trading above MA 200 for a month, it is a sign of a long-term upward trend. If it falls below, it may be a signal for a sell-off.
Traders use this to enter and exit positions. Simple, but effective.