By plotting the average price over the last several candles, the line is less “jerky” than plotting the actual prices.
In this state, the price is likely in an established uptrend.
The opposite is true when the faster-moving average crosses below the intermediate moving average which in turn crosses below the slower moving average., triggering a bearish event.
If you liked this article, then please subscribe to our Newsletter Services for Forex Related updates. You can also find us on Facebook and can subscribe to our YouTube channel. You can also join our Telegram Channel for real-time trading analysis and discussion. Here is our service sitemap. If you have any confusion please leave your comments below.