Moving Average
NeutralReliability: MediumAlso called · golden cross, MA, death cross
The average price of N candles. You read trend direction and dynamic support/resistance.
How to spot it
- Short average above long average is bullish alignment
- Below is bearish alignment
Why this shape forms
It is the average price over recent sessions. In one line it tells you whether today’s buyer is paying more or less than the recent crowd.
Where it actually means something
Useful only where there is a trend. In a range, price crosses the line constantly and every signal becomes noise.
What else to check
Test different lengths and see which one price actually reacted to. 20, 60 and 120 are common but the responsive one varies by instrument.
This means you're wrong
If price crosses back and forth frequently, it's a range and the signal isn't usable.
The mistake beginners make
Entering on the golden cross. It's a lagging indicator, so the signal arrives after the move.
Easy to confuse with
Golden and death crosses summarise what already happened. Use them knowing they arrive late by construction.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.