In day trading, some traders draw a trend line.
If the prices cross over the line, then they go LONG/BUY.
If the prices cross under the line, they go SHORT/SELL.
Now we can apply the same technique to a MOVING AVERAGE.
My pick is SMA(20).
SMA(20) is the default middle line of a Bollinger Band.
If a full candle is above the SMA(20), then go LONG/BUY.
Vice versa for short.
If a full candle is below the SMA(20), then go SHORT/SELL.
The neon colors are courtesy of our webmaster, Jimmy.
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As you can see in the picture, SMA(20) is a powerful indicator.
