@kverma605 on ETHUSD | PriceONN Community
Hi everyone, I'm new to this. I'm trying to understand how the Simple Moving Averages (SMA) can help with trading ETHUSD. I see the 20-day SMA is at 1905.14, and the price is around 1904. Does that mean it's likely to go down? Is that a good indicator to use?
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update: I saw a chart that says if the price breaks below the 20-day SMA, it's a bearish signal. Is that generally true? Or are there other things I should look at too?
C
@kverma605 Hey Kavita, welcome! SMA's are helpful, but don't rely on just one indicator. The 20 SMA being around the current price (1904 ish) could suggest a possible short-term downtrend, but look at other things too. Check the RSI, MACD, and volume. Also, consider longer timeframes like the H4 or D1 to get a bigger picture. I wouldn't jump into a trade based solely on the 20 SMA crossing the price. Practice on a demo account first to get a feel for how they work together. Good luck!