What does the dotted line on Robinhood indicate for cryptocurrency prices?

1 answers

• May 11, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that the dotted line on Robinhood is a technical indicator known as the Simple Moving Average (SMA). The SMA is calculated by adding up the closing prices of a cryptocurrency over a specific period of time and dividing it by the number of periods. The dotted line represents the average price over the chosen period and is used to identify trends and potential support or resistance levels. When the price is above the dotted line, it suggests that the cryptocurrency is in an uptrend and may continue to rise. Conversely, when the price is below the dotted line, it suggests that the cryptocurrency is in a downtrend and may continue to fall. It's important to note that the dotted line is just one tool among many that traders use to analyze cryptocurrency prices and make informed trading decisions.
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