[TP Academy⑪] Eliminating Chart Noise... The Trend Compass "Moving Average Line"

For investors wavering amidst the noise of the cryptocurrency market, ‘TokenPost Academy’ with 8 years of live experience will provide genuine investment standards. We invite you to embark on a seven-stage masterclass journey that replaces ‘feelings’ with ‘data’ and ‘luck’ with ‘strength’. [Editor’s Note]

“Just looking at the chart makes me dizzy. I can’t tell if it’s going up or down.”

This is the feeling novice investors have when first encountering candlestick charts. The cryptocurrency market is a highly noisy market with dozens of fluctuations every day. There is a tool that can eliminate this noise and clearly show the market’s direction. That is the ‘Moving Average Line’.

◆ Lifeline and Prosperity Line: 20-day Line and 200-day Line

The moving average line is the average of the past few days’ prices. Among many moving averages, traders trust two lines the most.

20-day Line: Shows short-term trends. In an upward trend, the price will move along the 20-day line. If this line is broken downward, a short-term correction may occur. It is also the middle band of the Bollinger Bands.

200-day Line: Serves as a benchmark for judging long-term trends. If Bitcoin’s price is above the 200-day line, it is considered a ‘bull market’; if below, a ‘bear market’. Institutional investors also use this line as an important reference when deploying funds.

◆ The Truth About Golden Cross: “Confirm Before Entering”

When a short-term moving average crosses above a long-term moving average, it is called a ‘Golden Cross’. This is considered a strong bullish signal. Conversely, the situation is called a ‘Death Cross’.

But beware of blind superstition. Moving averages are ‘lagging indicators’ based on past data averages. When a Golden Cross appears, the price may have already risen significantly from the bottom. Therefore, rather than using it as a buying opportunity, a wiser approach is to see it as a confirmation that the ‘trend is confirmed to be upward’.

◆ Auxiliary Indicators Are Ultimately Just ‘Assistants’

Besides moving averages, there are auxiliary indicators like RSI. An RSI above 70 is interpreted as overbought, below 30 as oversold. But the most important factors are always ‘price’ and ‘trading volume’. Auxiliary indicators are just navigational aids to help you judge; the steering wheel must be controlled by you.

If you can understand the slope and arrangement of moving averages, you won’t lose direction even in a storm. Turn off the chart noise and go with the trend.

👉 [Chart Master] From setting up moving averages to using RSI and capturing practical buy and sell points. To truly understand chart techniques, complete your learning in TokenPost Academy ‘Stage 4: The Trader’.

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