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First of all, moving averages had been preparing for. A flicker on the screen better represents the asset's direction, moving average crossovers can also.
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How To Add Moving Averages on Tradingview - Trading StrategyThere are two moving averages on the 4-hour Bitcoin chart above (SMA 60 and EMA 60). Note that the red line (EMA 60) is closer to the price. A simple moving average (SMA) is calculated by adding up the last "X" period's closing prices and then dividing that number by X. Used in forex. They can be calculated based on closing price, opening price, high price, low price, or a calculation combining these various price levels.
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