The common lines of EMA are 5 days, 10 days, 30 days, 60 days, 120 days and 240 days. Among them, the short-term moving averages on the 5th and 10 are the reference indicators for short-term operation, which are called the moving average index; 30 days and 60 days are medium-term moving average indicators, called quarterly moving average indicators; 120 and 240 days are long-term moving average indicators, which are called annual moving average indicators.
The EMA can produce a good trading signal, but it also has many defects. If investors use a short-term (e.g. 5-day) moving average, the moving average will be very close to the market and often cross. When the market is in the trading range, it is easy to produce false signals, thus increasing the transaction cost and causing losses. If investors use a long-term (for example, 60 days) moving average, they must give up a lot of profits (it follows the trend from a long distance), although they can avoid the trading range and reduce the generation of false signals. Therefore, it is usually more advantageous to use two or three moving averages at the same time. If you look for buying and selling signals through three moving averages, you will get a buying signal when the short-term moving average crosses the medium-and long-term moving average, and a selling signal when the short-term moving average crosses the medium-and long-term moving average. Investors can use some funds to open positions when the short-term moving average crosses the medium-term moving average, wait for the short-term moving average to cross the long-term moving average, or open positions when the short-term moving average crosses the medium-term moving average. The advantage of this is to avoid false signals and protect profits as much as possible. Preparation conditions: 1. The three moving averages, 5-day moving average, 13 moving average and 34-day moving average, are all exponential moving averages. 2. The gold foreign exchange chart is above the one-hour level. 3. Observe the signals given by the three moving averages.
Generally speaking, the long-term moving average system is relatively stable and the error rate is low. However, due to the slow response, the market has been gone for a long time when the signal appeared, and there is not much room for profit. However, the short-term moving average reflects agility and has a large profit margin, but there are often more false information, that is, there are more false signals, the success rate of operation is low, and stop loss often occurs.