@junkiesdow
Moving averages help smooth out price fluctuations, making it easier to spot underlying trends. The Simple Moving Average (SMA) gives an average price over a specified time, while the Exponential Moving Average (EMA) gives more weight to recent prices, making it more reactive. When short-term moving averages cross above long-term ones, it’s often seen as a bullish signal (golden cross). Conversely, when they cross below, it can signal bearish momentum (death cross). These indicators are used to identify trends, reversals, and optimal entry or exit points in volatile markets.
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