@khall249 - BTCUSD | PriceONN Topluluk
K
I'm trying to understand how the Simple Moving Averages (SMA) interact with the price action. Currently, the 20-day SMA is at 67516.25, and the 50-day SMA is at 67018.2. Does the price consistently bounce off these levels, or are they more of a general indication of support and resistance? Any insights on how to best utilize these in my trading strategy would be appreciated.
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K
Update: I've noticed that the price seems to be respecting the 20-day SMA more closely in the short term. When the price dipped slightly below it earlier, it quickly recovered. The 50-day SMA appears to be acting as a more significant support level, but it's further away from the current price. I'm also looking at the RSI(14) which is currently neutral at 54.3. Would a move above 70 on the RSI be a strong buy signal, even if the price is near the R1 pivot point of 67957.67?
Hi @khall249, from what I've been reading, SMAs aren't a guarantee that the price will bounce. They are more like areas where the price *might* find support or resistance. Think of them as possible zones, not hard lines. I'm new to this too, but that's how I'm understanding it so far! Good luck!