Are there any specific moving average envelope settings that are commonly used in cryptocurrency analysis?

3 answers

• Dec 16, 2021 · 3 years ago
  Moving average envelope settings can vary depending on the specific cryptocurrency being analyzed and the trader's strategy. However, some commonly used settings include a 20-day simple moving average (SMA) with an upper envelope of 2% and a lower envelope of -2%. These settings create a channel around the moving average, indicating potential overbought or oversold conditions. Traders may use these envelopes to identify entry and exit points for their trades. It's important to note that these settings should be used in conjunction with other technical indicators and analysis techniques for a comprehensive trading strategy.
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• Dec 16, 2021 · 3 years ago
  When it comes to moving average envelope settings in cryptocurrency analysis, there is no one-size-fits-all approach. Traders and analysts often experiment with different settings to find what works best for their specific needs. Some may prefer shorter or longer moving averages, while others may adjust the envelope percentage to capture more or less volatility. It's essential to backtest different settings and evaluate their performance before implementing them in live trading. Additionally, it's crucial to stay updated with market trends and adjust the settings accordingly to adapt to changing market conditions.
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• Dec 16, 2021 · 3 years ago
  In my experience at BYDFi, we have found that using a 50-day exponential moving average (EMA) with an upper envelope of 3% and a lower envelope of -3% can be effective in cryptocurrency analysis. These settings provide a wider channel for price fluctuations, allowing for more flexibility in trading decisions. However, it's important to remember that moving average envelope settings should not be used in isolation. Traders should consider other factors such as volume, market sentiment, and fundamental analysis to make informed trading decisions.
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