Moving averages are one of the most popular technical indicators used by trading bots, including Kryptomf_ai. This post explains what they are, how they work, and how your bot uses them.
1. What Are Moving Averages?
A moving average smooths out price data to identify trends. The two common types are Simple Moving Average (SMA) and Exponential Moving Average (EMA).
2. How Moving Averages Are Calculated
SMA: average of prices over a set period.
EMA: gives more weight to recent prices, reacting faster to changes.
3. Signals from Moving Averages
Crossovers (e.g., when a short-term MA crosses above a long-term MA) can signal trend changes. Kryptomf_ai uses these signals to help decide when to enter or exit trades.
4. Common Pitfalls
Moving averages lag price action and can give false signals in choppy markets. That’s why Kryptomf_ai combines them with profit targets and other risk controls.
Conclusion
Moving averages provide a solid foundation for automated trading strategies. Understanding them helps you trust and optimize your bot’s performance.
