Moving averages are a popular tool used by traders to smooth out price data and identify trends 📊. By averaging the prices over a specific period, such as 20 or 50 days, traders can filter out the "noise" of daily price fluctuations and get a clearer view of the overall direction 📈!
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There are different types of moving averages, with the Simple Moving Average (SMA) and the Exponential Moving Average (EMA) being the most common 🔄. The SMA calculates the average of prices over a set period, while the EMA gives more weight to recent prices, making it more responsive to new information ⚡. Moving averages can also be used to identify potential buy and sell signals when the price crosses above or below the moving average line 📉. While they are powerful tools, it’s important to use them in conjunction with other indicators to make well-informed trading decisions 🧠. Understanding how moving averages work can help you better navigate the markets and develop a solid trading strategy 💡.
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🔥 TimeStamps 🔥:
00:00 - Introduction
00:40 - Trading with moving average
01:25 - First profit. I want to earn more
02:35 - From $86 to $165
03:50 - USD/BRL. Earned +$318
04:55 - Good! +$612
05:35 - Looking for a trade
07:05 - From $1.120 to $2.161
09:10 - Total profit is $7.650
09:45 - Conclusion
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