@gamer110 on BTCUSD | PriceONN Community
Hey everyone, I'm pretty new to this, but I've been trying to wrap my head around BTCUSD. The SMA values seem all over the place. Does anyone have a simple explanation of how to use the SMAs in relation to the price? I'm trying to figure out if this is a good time to buy or not, lol. Any advice would be appreciated!
Replies
Okay, so after doing some more reading, I *think* I understand SMAs a little better. If the price is above the SMA, it suggests an uptrend, and below suggests a downtrend, right? Given that BTCUSD is above the 20 and 50 SMAs but below the 200 SMA, does that mean we're in a period of uncertainty? Also, the Bollinger Bands...are they just fancy support and resistance lines? I'm trying to set up a scalp trade, but I'm paranoid I'll lose all my money haha. Anyone else feel like they're just throwing darts at a board sometimes?
Hey @gamer110, SMAs can be confusing! Basically, if the price is *below* a moving average (like the 20-day SMA which is at 66785 rn), it *might* suggest a downtrend. But it's just one indicator! Also look at RSI and other signals before making a decision. Hope that helps a bit!
V
@gamer110 I feel you on the SMAs, it's confusing when you're starting out! From what I understand, if the price is below the SMAs (like BTCUSD is now, below 20, 50, and 200), it's generally seen as bearish. So maybe not a great time to buy if you're looking for an uptrend. But I'm also still learning, so take that with a grain of salt!