What is the 100 day moving average in the context of cryptocurrency trading?

1 answers

• Deeksha KesharwaniNov 21, 2023 · 2 years ago
  The 100 day moving average is a widely used indicator in cryptocurrency trading. It is calculated by adding up the closing prices of a cryptocurrency over the past 100 days and dividing the sum by 100. This moving average helps smooth out short-term price fluctuations and provides a clearer picture of the overall trend. Traders often use the 100 day moving average as a support or resistance level. When the price of a cryptocurrency is approaching the 100 day moving average from below, it may find support and bounce back up. On the other hand, when the price is approaching the 100 day moving average from above, it may encounter resistance and start to decline. By paying attention to the price's interaction with the 100 day moving average, traders can make more informed decisions and improve their trading strategies.
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