✔️ Information reviewed and updated in December 2023 by Eduardo López
Currently there are many tools to support cryptocurrency trading, one of them is technical analysis indicators such as the Multiple Smoothing Moving Average. These tools help identify certain types of signals and directions in the cryptocurrency or stock market.
These indicators can be used to find points where there is a high probability that the price will change direction. These points can be determined using divergences between the price movement and the moment.
They also measure the strength of recent price movements relative to previous periods. For this reason, the indicators fluctuate between values of 0 to 100 and give signals as to whether market conditions are overbought or oversold.
In this article we will explain a little more about the multiple smoothing moving average indicator.
✨Definition of the Multiple Smoothing Moving Average indicator✨
This indicator is based on the smoothed moving average of the first moving average (double smoothed) or the other two moving averages (triple smoothed). Each moving medium can have different periods and calculation methods (exponential, simple, weighted, etc.).