# Moving Average (MA)

{% embed url="<https://www.youtube.com/watch?v=otsnlbOydk4>" %}
[Part 1](https://www.youtube.com/watch?v=otsnlbOydk4) | [Part 2](https://www.youtube.com/watch?v=Q91XyhwM-dg)
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​Moving Averages move based on historical price data. This dynamic and moving average, updated by including the last closing price, determines the "MA" movement. They are lagging indicators as they are shaped by past price movements. The "MA" following the trend direction is also used to detect support-resistance levels.

Moving Averages can be analyzed in four parts:

* Simple Moving Average (SMA)
* Exponential Moving Average (EMA)
* Linear Weighted Moving Average (WMA)
* Smoothed Moving Average (SMMA)

Generally, periods such as 5, 10, 13, 20, 21, 26, 50, 99, 100, 144, 200 are used. Investors can determine the periods according to their own choices. The moving average "EMA" that Coinlegs software gives the most importance, and the EMA of 5, 7, 13, 20, 21, 34, 50, 100 and 200 periods is used in its software.

{% hint style="success" %}
All moving averages are interpreted with the same logic. The intersections of price action and moving average represent possible buy or sell signals. Price action can be interpreted as a buy signal if MA crosses above the average , and a sell signal if MA crosses below the average. If the short period moving average crosses above the long period moving average, it can be considered as a buy signal.If the short period moving average crosses below the long period moving average, it can be considered as a sell signal.
{% endhint %}

Look at the direction of the moving average gaves us the  basic idea of which way the price is moving. If it is angled upwards, the price is moving up overall; angled downwards, and the price is moving down overall; moving sideways, and the price is likely in a [range](https://www.investopedia.com/terms/r/rangeboundtrading.asp).

An increase in the moving average of a market is interpreted as an upward trend in the price movement, and a decrease in the moving average of a market is interpreted as a downtrend. It heralds an uptrend if price action rises above the rising moving average, and a downtrend if price action falls below the falling moving average.

Investors also use moving averages to determine support-resistance levels that can occur on price movements. For price action in an uptrend, "MA" is interpreted as a support level, while for price action in a downtrend, "MA" is interpreted as a resistance level.

{% hint style="info" %}
​In order to easily obtain MA detections, you can create <mark style="color:blue;">Alarms</mark> or <mark style="color:blue;">Special Signals</mark> through the Coinlegs system, and start autotrading bots on <mark style="color:blue;">LegsBot</mark> by using the alarms you create.
{% endhint %}


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