Moving average
A moving average smooths price into a single line that tracks its average over a recent window, making the underlying direction easier to see.
A moving average takes the price over a recent window of time and averages it into a single, smoother line. As new prices arrive, the window moves forward, so the line continuously updates. The result strips out a lot of short-term noise and makes the underlying direction of a market easier to read.
Traders often use a faster moving average, which reacts quickly to recent price, alongside a slower one, which responds gradually and reflects the longer trend. When the faster line sits above the slower one, the recent trend is generally up; when it sits below, the recent trend is generally down. The relationship between fast and slow lines is a common, transparent way to describe trend direction without predicting the future.
Crypto Wealth uses the relationship between a fast and a slow moving average as one input into reading the trend on the 4-hour timeframe. It is one piece of context, combined with market structure and participation, rather than a signal on its own.
