That the 52 moving average is your friend. And the 52 moving average Bollinger bands are your best friend.
So I'm just looking here at GJ, GBP JPY. Pound Yen.
I'm looking at the 1 hour and the daily time frames. The bright yellow line is the 52 moving average. Above and below it are the Bollinger bands. If you take a look at the first image you will see that price bounced off of the 52 moving average. It did so after it retraced from the top Bollinger band of the 52 moving average.
1 Hour
Now if you look at the daily It's doing the same thing. Bouncing off of the 52 moving average. And it did so after it had spent some time at the very top Bollinger band.
Daily
We can even zoom in on some smaller time frames to see how price is respecting this particular moving average. On this 5 minute time frame you can see that price is starting to bounce off of the lower Bollinger band and retrace back up to the 52 moving average.
5minute
A lot of people will tell you that the 18 or the 20 moving average Bollinger band is the standard. And I believe that. I am just sharing with you an observation that I respect. I'm using GJ as an example. And I cannot speak for other trading products, but I do think that in other products such as Bitcoin or hive, you will notice that the 52 moving average has some gravity to it.
This is bitcoin's 1 hour. You can see that Bitcoin is staying within the Bollinger band up to 52 moving average.
Bitcoin 1 hour
Now when I zoom out to the daily, I can see that Bitcoin is in a downtrend and staying below the 18 moving average. Average. But that is because it's in a downtrend now. But if it was in a range I would keep an eye on the 52 moving average.
So in general if product is in a range I tend to just play the top and bottom Bollinger bands of the 52 moving average. If the product is in a trend then what I will do is look for price to ride the Bollinger band and at times retrace to either the 52 moving average itself, or bounce quickly off of the other Bollinger band.
For example If Bitcoin continues in this downtrend I would not be surprised if at some point it gets a bounce back up to its 52 moving average on the daily
Bitcoin Daily
So on the Bitcoin daily chart you can see that we are in a downtrend and respecting the 18 moving average. However, that 52 moving average way up high and I do think it's still acts as a magnet. So if we do get a bounce I would be careful as price gets closer to that moving average for any sort of resistance. If it can reclaim the 52 moving average then we could be back into a bull run for a while.
So in short, I just wanted to share these observations with you about the moving averages. If you're really in a run, then maybe keep an eye on the nine moving average. Common belief is to respect the 18 moving averages. But for larger swings and ranges, I have noticed that the 52 moving average is interesting for a lot of trading products, especially GJ GBPJPY, and forex pairs.
It's not trading advice. And it's not the only rule. One still has to mark their tops and bottoms of months. And keep an eye on news to some degree. But the Bollinger bands are just something that I have noticed and respect.
If you have any questions or comments I really welcome them. If you can leave an upvote or a comment I really appreciate that. It keeps me motivated, encouraged, and at the end of the day it's nice.
Please join us tomorrow, Thursday for a hive hangout hosted on Twitter spaces. You can just listen via your desktop. Or if you want to join in and talk, you can use your phone. I really welcome everybody on Hive to join us.
https://twitter.com/i/spaces/1OwxWzpkNLNJQ
@forykw was Cool enough to help explain the defi that is available through the Hive community. I am hoping we can have a weekend that we can host a spaces where Forky can explain things better than I can.
We went a little bit long today. But it was really great check. What I really appreciate is that everybody's different. And we all find our path in this world. And the cool thing about Hive is so many different people can learn so many different things.
https://twitter.com/i/spaces/1OwxWzpkNLNJQ
Again, I really appreciate any upvotes. Any sharing. And especially any comments that you may have regarding day trading. I'm wishing you abundance and all the best and all you do.