Long Array and Short Array of Moving Averages

Long Array Moving Averages refers to that the short-term moving average is at the top, the mid-term moving average is at the center, the long-term moving average is at the bottom. Meanwhile, these moving averages move up at the same time. Long Array Moving Averages indicates that the long side (buyers) has strong power, which is a typical buying signal.

The figure below is the daily candle chart of ETH/USDT. The short-term, medium-term, and long-term moving averages are 5-day, 10-day, and 30-day moving averages respectively. After July 21, 2020, the moving average appears long array. Even if the investors who missed the ‘golden cross’ buy point on the 21st, after observing and identifying the long array buying signal, they can earn in this rally. From another point of view, for robust investors, a ‘golden cross’ buying signal appeared on the 21st, followed by a long array, increases the reliability of the buying signal.

Investors need to pay attention to the fact that the long array of the moving averages and the good candle line patterns are complementary. If the candlestick pattern deteriorates, the long array of moving average will no longer exist. Therefore, as long as the moving averages are arranged in long array position, even if there are some bad candle lines or candle line combinations, there is no need to panic and it is not advisable to change the position.

In the above chart, on July 28th and 29th, there were hanging man and doji, but at the same time the moving averages still showed a long array. At this point, investors should not arbitrarily think that this is a peak signal. It is wiser to hold the pair instead of short selling it.

Short Array of Moving averages: moving averages are falling simultaneously, with long-term moving average at the top, mid-term moving average in the middle, and short-term moving average at the bottom. It indicates that the short side (seller) is stronger. Especially after a period of rally, the moving averages appear to be short array, indicating that there will be a larger downtrend.

On July 12, 2020, the moving averages of ETH appeared to be short array. After observing and identifying this short signal, investors can go short in time and make a profit in this decline.

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