Which MAs should a trader choose? Understanding the main types of moving averages

When you first open a chart and see multiple lines labeled MA20, MA50, MA200 — it might seem like complex science. In reality, moving averages are simply a tool for reading the market that shows the average price over a certain period of time.

Which MAs do traders use most often?

In the cryptocurrency market, there are several “gold standards.” MA50 and MA200 are the most in demand among professionals. Why? Because they work on long-term trends and help avoid getting lost in short-term price fluctuations.

MA20 is preferred by those catching faster movements. If you trade on hourly or four-hour charts, this moving average will help determine the local trend.

There are other options — MA9, MA100, MA365, but they are less universal. Which MAs are best suited for you depends on your trading style and time frame.

How do these lines work in practice?

When the price trades above the moving average — it’s a signal of an uptrend. If below — a possible downtrend. Crossings of MAs with each other, for example, MA50 crossing MA200 from below upwards, often serve as entry or exit points.

But here’s an important point: these indicators do not predict the future. They reflect what has already happened in the market. Therefore, they should be used as part of a comprehensive analysis, not as the sole signal to act.

Practical tips for beginner traders

The first rule — start with the two most reliable moving averages: MA50 and MA200. They will give you a general understanding of where the market is heading.

Second — apply these tools on different timeframes. On the daily chart, MA200 shows the long-term trend, on the four-hour — the medium-term.

Third — be sure to practice on a demo account before applying this knowledge with real money. It will help you feel how moving averages react to various market situations.

Remember: which MAs to use is a personal choice for each trader. Experiment, find your combination, and constantly improve your analysis.