{"id":3316,"date":"2021-01-27T08:21:42","date_gmt":"2021-01-27T08:21:42","guid":{"rendered":"https:\/\/afluxcoin.com\/21\/moving-averages-in-digital-asset-markets%e2%80%8a-%e2%80%8athe-golden-cross-and-the-death-cross-explained\/"},"modified":"2021-01-27T08:21:42","modified_gmt":"2021-01-27T08:21:42","slug":"moving-averages-in-digital-asset-markets%e2%80%8a-%e2%80%8athe-golden-cross-and-the-death-cross-explained","status":"publish","type":"post","link":"https:\/\/afluxcoin.com\/ar\/21\/moving-averages-in-digital-asset-markets%e2%80%8a-%e2%80%8athe-golden-cross-and-the-death-cross-explained\/","title":{"rendered":"Moving Averages In Digital Asset Markets\u200a\u2014\u200aThe Golden Cross And The Death Cross Explained"},"content":{"rendered":"<p>An important indicator used in analyzing the price of an asset is the moving average. Averages provide traders an idea of which direction an asset\u2019s price is trending, either on the upside (going up) or downside (going down). In terms of value, a moving average trending on the upside is favorable if it increases the price of the asset. That results in massive gains for investors, but it can also have a downside, which results in massive losses (i.e., rekt investors). Moving averages are used mainly for technical analysis in the stock market. In cryptocurrency markets, the use of moving averages can be used to analyze trends for digital assets like Bitcoin and Ethereum.Moving AverageThe moving average (also called Simple Moving Average or SMA) is the movement of an asset\u2019s average closing price taken from a certain period of time. The most common way to measure it is in terms of a set period of points representing a day. Technical analysts often use a 200-day or 50-day moving average. The points are plotted against each other and this helps analysts predict the movement of prices. An important insight this can provide is the level of resistance and support that can be expected.The SMA can be taken from a time period from a subset of a data series. The data series is the daily closing price of an asset (P) taken over a certain period (t) or number of days. The sum of the prices from the first term 1 to the last term (n) is taken over the total number of days.SMA = \u2211 (P1 + P2 + \u2026 + Pn) \/ tSMA plotted on a graph (Created in TradingView)I took a 50-day MA data series starting from December 6, 2020 until January 25, 2021 (at date of closing price).\u2026<\/p>","protected":false},"excerpt":{"rendered":"<p>An important indicator used in analyzing the price of an asset is the moving average. Averages provide traders an idea of which direction an asset\u2019s price<span class=\"excerpt-hellip\"> [...]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/3316"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/comments?post=3316"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/3316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/media?parent=3316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/categories?post=3316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/tags?post=3316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}