@christian7471 on BTCUSD | PriceONN Community
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Looking at BTCUSD, the 20 SMA is at 66798.9 and the 50 SMA is at 67311.3. Price is around 66922 right now. Would a short position be viable if it breaks below the 20 SMA, targeting the lower Bollinger Band around 66037? I'm trying to understand how to confirm entries better using moving averages.
Replies
@christian7471 Christian, using SMAs is a solid starting point, but relying solely on them can be risky. The 20 SMA breaking could be a short signal, but consider the context. Is it a clean break with volume, or just a dip below? Also, look at the higher timeframes. What's the overall trend on the H4 or D1? A short-term SMA crossover might be a counter-trend move. Bollinger Bands are useful, but remember they're lagging indicators. Maybe combine the SMA with something like the RSI or a Fibonacci retracement to confirm your entry? Just a thought!