Section 3 · Chart Reading
Moving Averages
A constantly updating average price — the trend in a single line.
A moving average is a constantly updating average price.
9 EMA reacts in minutes, 20 EMA in days, 200 MA in weeks. Price above = bullish. Price below = bearish. Moving averages define the bias before you even look at a candle.
3 things to know
9 EMA: the pulse of short-term momentum traders — reacts to every move.
200 MA: the dividing line between bull and bear — institutions watch this daily.
Death Cross (50 below 200) and Golden Cross (50 above 200) are major signals.
Dive Deeper
Moving averages ranked by reaction speed
9 EMA
Intraday momentum — reacts in minutes
20 EMA
Short-swing trend — reacts in days
50 MA
Medium-term trend — reacts in weeks
200 MA
Institutional bias — reacts in months
Key vocabulary — tap each card
Did you know?
The "Death Cross" — 50-day MA crossing below the 200-day MA — preceded both the 2008 financial crisis crash and the 2020 COVID selloff. The "Golden Cross" (50 above 200) preceded some of the biggest bull runs in history.