MA cross is a crossover trend indicator
As a crossover trend indicator, MA cross is used to filter out noise from the price chart thus enabling traders to know the direction in which the market is moving. Since MA cross is a crossover trend indicator, it therefore has two moving average, the shorter term moving average and the longer term moving average. The shorter-term moving average is normally red in color and it represents the price while the longer term moving average is normally blue in color and it represents the moving average.
We can therefore further explain the MA cross for bullish and bearish market as follows;
1. MA cross bullish cryptocurrency market
Therefore, since MA cross is based on the crossover, it, therefore follows that when the short term moving average crosses above the long-term moving average from below,that will be an indication of an upward market movement . This will signals the cryptocurrency trader to continue holding the cryptocurrency which he will have purchased earlier. This is indicated as from below;
The above is the TRX market against USDT. Two points are being indicated. There is point A , Point B and point C. Point A which is red in color is the short term moving average while point B which is blue in color is the long-term moving average. Point C on the other hand is the crossover point. At point C, the short-term moving average has crossed above the long-term moving average from below thus an indication of a support point over there. This signals the cryptocurrency trader to purchase a given amount of TRX with their USDT balance. The cryptocurrency trader can either place a market buy order which will be processed immediately or they can place a limit buy order which will be processed when the market reaches their limit buy order price. When the order is being processed, the account of the trader will start increasing in value
1. MA cross bearish cryptocurrency market
Therefore, since MA cross is based on the crossover, it, therefore follows that when the short term moving average crosses below the long-term moving average from above, that will be an indication of a downwards market movement . This will signals the cryptocurrency trader to sell a given amount of cryptocurrency which he had previously purchased and is currently holding in order to avoid declining the value of their trading account. The trader can either place a market sell order which will be processed immediately or a limit sell order which will be processed when the market reaches their limit sell order price.This is indicated as from below;
The above is the TRX market against USDT. Two points are being indicated. There is point A , Point B and point C. Point A which is red in color is the short term moving average while point B which is blue in color is the long-term moving average. Point C on the other hand is the crossover point. At point C, the short-term moving average has crossed below the long-term moving average from above thus an indication of a resistance point over there. This signals the cryptocurrency trader to sell a given amount of TRX which he had previously purchased and is currently holding. The cryptocurrency trader can either place a market sell order which will be processed immediately or he can place a limit sell order which will be processed when the market reaches their limit sell order price. When the order is being processed, the account of the trader will have increased in value in terms of USDT.
cryptocurrency market is a highly volatile market. As a cryptocurrency trader,whenever you place a buy order,always make sure to apply risk management so that whenever your buy order goes against you, your account do not depreciate so much in value.
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