This is the average price for a period of time that you set in the settings.
On Binomo, the time interval corresponds to the number of candles for which the value will be calculated.
Why is it called “mobile”? Because the value of the moving average is not constant, it fluctuates in price, showing the trend and speed of movement. When we know the trend and the speed of change in price over the past hour / hour / day, we can make forecasts to bring about profitability.
Signals for trading are the crossing of price with MA or the crossing of MA / MA. Typically, this indicator is used in conjunction with other indicators to increase the accuracy of the forecast.
Examples of some trading strategies using the moving average:
- The moving average along with the MACD indicator – here we have two moving averages. The direction in which two lines intersect will be the direction in which we make the transaction.
- Helix – To make a prediction, look at the location of the MA line in relation to the Bollinger band.
- Pursuit – a strategy that you can use to predict what prices will be within a minute.
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Wish you are a successful investor!