The move average is one of the most important functions, and when it’s not working to your advantage, you could lose a lot of money. When a user is paying you, and you’re not generating income, a move average means you’re losing money.
You can find that the move averaged over time, or for a particular price range.
What if it’s a price/trade range that you’re used to?
There’s a good chance, that your move averages will be different from your normal move averages. A move average for a given price range could be different than a price/trade range for that same price range. These differences can affect the likelihood of making money at a particular price range.
For all of us, a move average is something that makes a certain amount of sense. It’s not something that has to be applied randomly. When you try to use it, you need to make the optimal move to compensate for that situation.
What if I only have a 10 percent or 6 percent move average and I’m doing a lot of buying and selling?
If you’re lucky, you might only have a 6 degree move average. If that’s the case, you can see how it works:
The difference between the movement of the price around and the average is not very large. A lot of time, the difference will be much smaller. If anything, you need to pay attention to how the price is moving around. Try finding prices which are lower than those of the moving averages. Buy and sell only when you’re moving higher in the price/trade range. Don’t trade too rapidly, trading too slowly could lead to losses.
The movement between the price and the average is not always in line with your usual trade range. The average price could be too high or too low. When that happens, the difference between the move average and your original price might not be significant.
For example, if you have a move average for $1000 right now and the average for the entire price range is around $1000, that would mean there’s a 1.6% difference between the price, and the average. The difference might not be significant, but with a market this volatile, you should watch closely.
What if I’ve set the price higher than the price/trade range?
That’s good, you can try to adjust your price. But remember that adjusting the price to make it more or less advantageous will cause you to
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