Question n° 168 ·
How do simple moving averages and the Relative Strength Index (RSI) help assess Bitcoin's momentum?
- RSI alone indicates future price targets while SMAs are too lagging and irrelevant for traders.
- Crossovers of short and long SMAs reveal trend direction while RSI shows strength or weakness. Bonne réponse
- Moving average convergence divergence often outperforms simple SMAs and RSI when predicting daily trend reversals.
Pourquoi est-ce la bonne réponse?
This is correct because simple moving averages (SMAs) help identify when a shorter term trend crosses above or below a longer term trend, signaling potential bullish or bearish momentum, and the Relative Strength Index (RSI) measures overbought or oversold conditions, together giving a clear picture of ongoing price momentum.