@HarperYoung24 on GBPUSD | PriceONN Community

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I'm really struggling to understand how people use the moving averages to predict moves. I see them on charts but they just look like lines to me. Is there a specific way to look at the 20 and 50-day ones crossing? Or is it more about where the price is relative to them? Any simple explanation would be great.
GBPUSD

Replies (1)

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archie2003 PRO newbie Mar 25
Hey @HarperYoung24, I get what you mean about the MAs looking like just lines. For me, it's about context. When price is consistently above the 200 SMA, especially during the New York session, I see it as a general bullish bias for the day, assuming other factors align. The 20 and 50 crossing is often a signal of momentum shift, but I don't trade it on its own. I prefer to see price action confirm it. If price is hovering around those MAs, it can act as dynamic support or resistance. For example, if price pulls back to the 50 SMA and bounces, that's a stronger signal than just the MA line itself. Definitely check how price reacts to them on the H1 or H4 charts. Hope that helps a bit!
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