The moving average, also known as the moving average (MA), is not a K-line, but an indicator. These indicators are added to the K-line chart. As an additional reference indicator, MA is an important indicator. It is simple and clear to use, and it clearly shows the running track of the market, helping us to match and integrate the whole K-line form, allowing us to see more indicators while watching the K-line, and to integrate different K-line forms and indicators to find the best market trend changes.
Second, what is the moving average?
The principle of moving average (MA indicator) is very simple, that is, draw the average of closing prices in a certain time range on the K-line chart, and connect the points of these averages to form a line, which constitutes the moving average.
Moving averages can also be used as trend line indicators. K-line is strong when it runs above the moving average, and the probability of continuous rise is high. K-line running below the moving average is weak, and the probability of continuous decline is high.
In addition to the negative and positive lines, there are many lines with different colors in the K-line diagram: green, yellow, purple and so on. These lines of different colors are moving averages. The 5-day moving average is the average price of the sum of the closing prices of 5 trading days, and so on.
Third, set M&A indicators:
As shown below: After opening the K-line diagram, click MA and click Parameter Settings. Common settings are: 5. 10.30.60. 120. If the 5-day line is set, fill in the number 5. Click Save.
At the beginning, the EMA is set according to the trading day of the stock market, while the money market trades continuously at 7*24, so the corresponding indicators can be adjusted according to personal habits, such as 7 days, 14 days, 30 days, 90 days and 180 days.
White is the 5-day moving average, yellow is the 10 moving average, and purple is the 30-day moving average. Each color line represents a different moving average: the moving average can be set freely.
Four, the moving average of different periods and its application:
Moving averages can be divided into short-term moving averages, medium-term moving averages and long-term moving averages according to the length of time.
Short-term fluctuations use 5-day, 10-day and 5-week moving averages.
The mid-term market uses the 30-day line and the 60-day moving average.
The long-term trend is at the daily level 120 or 360.
In the financial market, the moving average index of 20, 30, 60,120,200 usually plays a decisive role in the long-term trend of prices. Among them, the 30-day and 60-day moving averages are the lifeline of the middle line, and their directions represent whether the price trend is bullish, bearish or consolidation, while the 120 and 200-day moving averages are the lifeline of bulls and bears.
Different operation periods are determined according to investors' own habits and preferences with the moving average of the corresponding period as the reference index.
For example, the 5-day line: Under normal circumstances, when the price deviates far from the 5-day line, it will be called back (or pulled back). The 5-day line is a short-term moving average with faster response. The function of the 10 daily line is the same as that of the 5-day line.
As shown in the figure, in order to facilitate everyone to look at the picture, only the 5-day line is set. You can see the K-line chart of all prices, whether closing positions or opening positions, they are all running on the moving average. The shorter the period, the more the moving average conforms to the K line.
Verb (abbreviation for verb) moves the inclination direction and angle of the average line:
The moving average is tilted upward: it is a rising market. Tilt down: for a falling market. The direction of the moving average is horizontal, representing sideways, with little fluctuation.
The moving average has the best upward trend, and the obvious downward trend does not choose to intervene.
The upward angle of the moving average is too steep, the market duration is short, and the price fluctuates greatly.
The greater the downward angle of the moving average, the greater the decline and the greater the price fluctuation.
45 degrees upward is the perfect angle, rising steadily.
Sixth, the combination of multiple moving averages: divided into: winding and divergence.
① When the market is obviously rising or falling, the moving averages of each period are basically arranged up or down in turn, which is the deviation of the moving averages. In turn, the bulls are arranged up and the bears are arranged down.
(2) When the EMA changes from divergence to winding, it means that the market is rising or falling, and the short-term EMA will fluctuate around the long-term EMA. The longer the winding time, the greater the explosion, and the longer the sideways bottoming time, the greater the increase is also understandable. At this stage of operation, wait-and-see or short-term operation is appropriate.
Seven, the average gold fork:
① The traditional short-term moving average golden fork refers to the process that the short-term moving average crosses the long-term moving average, for example, the 5-day line crosses the 10 line. If all moving averages diverge upward, the price will remain at the 5-day line and the 10 line, indicating that the price will rise. In this case, if there is an increment, the probability of seeing more is still quite large.
(2) When the short-term moving average goes down through the long-term moving average, the intersection is called a dead fork. It indicates that the price of money will fall.
Note: Not all gold crosses and death crosses are trading points. Some may be shock dishwashing or shock shipment by the dealer. In this case, investors should be careful. It is recommended to choose mainstream currencies such as Bitcoin and Ethereum, which are difficult for dealers to manipulate.
Eight, the relationship between the moving average and support, pressure: (What is pressure and support-)
When the K line runs above the moving average, the moving average below is called the support line.
When the K line runs below the moving average, the moving average above it is called the pressure line.
The support pressure of the moving average is not accurate enough, so it needs to be found by combining K-line, quantity and energy, and chip-intensive areas.
Use the moving average to judge the pressure and support, with the moving average closest to the current price as the main one. As shown in the figure, the 5-day line is closest to the current price, so the support or pressure should be based on the 5-day line. If it falls below the 5-day line, the next support will be based on the 10 line.
Nine, in practice:
Judgment basis: whether the K line runs above or outside the moving average, the distance between the K line and the moving average, whether the shape of the moving average itself is upward, horizontal or downward, and the inclination angle of the moving average.
For example, when the K-line is above the EMA and the EMA has an upward trend, the market is in an upward trend.
No indicator is omnipotent, nor is the moving average. Not every market can refer to the moving average. For example, when the market fluctuates, the moving average will form a bonded state, and there is no obvious running direction. At this time, the moving average is not credible.
Because the moving average is calculated according to the average price, the response is a bit delayed. The longer the cycle, the more obvious the lag, but the more stable it is. Choose the appropriate moving average according to your own operating habits. Often used as, 5-day line and 10 day line.
The regularity of the moving average is very strong. If the price moves up along the track of the moving average in the near future, once it falls and falls below this moving average, it is necessary to be vigilant.
Investors can look at the moving averages at all levels in turn, thoroughly understand this moving average, and add other moving averages to assist in judgment. Practice more and use it reasonably.