# Moving Average and Volatility Cloud

The moving average and volatility cloud is excellent for trending markets. During strong uptrend or downtrends, price tends to retrace straight to MoneyAlgo's moving average and volatility cloud. This creates excellent opportunities to "buy the dip" and take advantage of retracement opportunities. The cloud can also act like a support or resistance area as well. The cloud is especially useful when clearly trending either higher or lower. The further price is away from the cloud, the more extended price is and the higher the chance price will retrace back to the cloud.

<figure><img src="https://2046526320-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fdx0dFvbr6pTeznZZVyLl%2Fuploads%2F0vN3Jy1Nnpx8GHsLLRPO%2FScreen%20Shot%202023-10-26%20at%202.48.43%20PM.png?alt=media&#x26;token=c97abd4b-8da3-4858-a608-905457e488da" alt=""><figcaption></figcaption></figure>

You can activate the moving average and volatility cloud on the following page.

![](https://2046526320-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fdx0dFvbr6pTeznZZVyLl%2Fuploads%2Fg7xy9VWldCn4XK3pMd2K%2FScreen%20Shot%202023-10-26%20at%202.19.31%20PM.png?alt=media\&token=7613d3c6-292d-4444-be88-234c78500802)
