BTC/USD, Technical Outlook, Edition #133 (25/10/2021)
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Love is in the air as Bitcoin slow dances with EMA
Q explains Bitcoin’s love affair with the daily 20 EMA (D1 20 Exponential Moving Average).
Quick Guide: D1 20 Exponential Moving Average
The Exponential Moving Average is a variation of the Moving Average (MA) technical indicator.
The calculation of the EMA is weighted towards recent prices and generally considers these data points to be more significant within the given period.
Chartists commonly denote the given period when abbreviating the indicator.
In this case, the D1 20 EMA simply refers to:
D1 = Daily, 24-hour period
20 = 20 Days
EMA = Exponential Moving Average
To a certain extent, employing the 20 EMA in some form or other are much akin to Fibonacci retracements - i.e. some perceive them to be no more than a self-fulfilling prophecy.