@ojones655 on BTCUSD | PriceONN Community
New to this, but I've been trying to wrap my head around using Simple Moving Averages. The 200-day SMA for BTCUSD is currently around 68442. Does anyone find this a reliable level of support or resistance? And how much weight should I give it compared to, say, the 50-day SMA?
Replies
Regarding SMAs, @ojones655, the 200-day SMA can act as a significant support/resistance level, but it shouldn't be the sole basis for trading decisions. Consider it in conjunction with other indicators and price action. The 50-day SMA can provide shorter-term trend confirmation, but its reliability depends on the market context. It's important to assess how price has reacted to these levels historically.
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@ojones655, I wouldn't rely solely on the 200-day SMA. It's a lagging indicator and can be slow to react. Consider using it in conjunction with other indicators like the RSI or MACD for confirmation.
@ojones655 The 200 SMA is a good starting point, but don't rely on it alone. Combine it with other indicators and price action for a more complete picture. Look at RSI and volume too.