Simple Moving Average (SMA)

The Simple Moving Average is a commonly used tool by traders to analyze the general trend of the price. The SMA is a trend indicator that smooths price movements to filter out the noise of an asset. Traders frequently use this indicator to open and close trades through moving averages crossovers, and to find supports and resistances in different time frames. These crossovers are generated by predefining two moving averages, a slow and a fast one. The slow SMA takes into account a larger amount of periods, then catching the general trend of the asset. And the fast SMA is calculated with fewer periods, reacting quicker to price movements. During a bearish trend, when the fast SMA crosses the slow one upward, the trend is likely to have a reversal or correction and signals a buy. However, in a bullish trend and the fast SMA crosses the slow one downward, we will get a selling point.

Start trading with Cryptohopper for free!

Free to use - no credit card required

Let's get started
Cryptohopper appCryptohopper app

Disclaimer: Cryptohopper is not a regulated entity. Cryptocurrency bot trading involves substantial risks, and past performance is not indicative of future results. The profits shown in product screenshots are for illustrative purposes and may be exaggerated. Only engage in bot trading if you possess sufficient knowledge or seek guidance from a qualified financial advisor. Under no circumstances shall Cryptohopper accept any liability to any person or entity for (a) any loss or damage, in whole or in part, caused by, arising out of, or in connection with transactions involving our software or (b) any direct, indirect, special, consequential, or incidental damages. Please note that the content available on the Cryptohopper social trading platform is generated by members of the Cryptohopper community and does not constitute advice or recommendations from Cryptohopper or on its behalf. Profits shown on the Markteplace are not indicative of future results. By using Cryptohopper's services, you acknowledge and accept the inherent risks involved in cryptocurrency trading and agree to hold Cryptohopper harmless from any liabilities or losses incurred. It is essential to review and understand our Terms of Service and Risk Disclosure Policy before using our software or engaging in any trading activities. Please consult legal and financial professionals for personalized advice based on your specific circumstances.

©2017 - 2024 Copyright by Cryptohopper™ - All rights reserved.