Moving Average is a technical indicator that refers to an average price for a particular trading instrument over a specified period. They are calculated by adding up the last X number of periods and dividing that sum by the total number of periods.
You may use this line as a support or resistance level indicator and base trades around it.
In the CoinStats app, you will see blue and orange lines on the candle charts, which stand for the 23MA and 5MA respectively.
The Blue line - 23 Moving Average calculates the average price of a specific coin over the past 23 periods/candles.
The Orange line - 5 Moving Average calculates the average price of a specific coin over the past 5 periods/candles.
E.g., In the 24H chart, the 5MA shows 5 hours period
In the 1W chart, the 5MA shows 5 weeks period
In the 3M chart, the 5MA shows 5 months period.
The 5-day moving average is calculated by totaling the previous 5 days' price data and dividing by 5. Each time a new period occurs, the MA moves forward, dropping the first data point and adding the newest one. The same refers to 23MA.
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