Trading & Technical Analysis

What is a moving average in crypto trading?

A moving average is a line that smooths price data by averaging the closing price over a chosen number of periods, making the underlying trend easier to see through short-term noise. As each new period closes, the oldest value drops off and the newest is added, so the line moves with price. For example, a 50-day moving average plots the average closing price of the last 50 days and updates daily. Traders use it to describe trend direction and as a reference level, while remembering it lags price because it is built from past data.