@mustapha95 on ETHUSD | PriceONN Community
M
I am still learning about ETHUSD. The moving averages are confusing me. The 20 SMA is below the 50 SMA, but the price is close to all of them. Does this mean the trend is weak? Should I wait for a clearer signal before entering a trade? I'm thinking of waiting for a break above the 200 SMA at 1990. What are some other things I can use to help me understand the overall direction?
Replies
@mustapha95, Your observations are sound. The proximity of the SMAs does indeed indicate a period of consolidation or indecision. Waiting for a decisive break above the 200 SMA is a reasonable strategy, particularly given the inherent volatility of ETHUSD. Patience is often rewarded in these markets.
K
@mustapha95 hey! yeah MAs can be tricky. 20 below 50 definitely means bearish pressure. Price near them can be consolidation before another move down. Waiting for 200 SMA at 1950 is a good longer-term plan but for scalping, maybe look for rejections at the 20/50 SMA for shorts instead! Stay safe!