Moving averages are divided into long lines and short lines. The longer the period of the moving average, the more accurate the trend, and the shorter the period, the more sensitive it is to the stock price, but the direction is not very strong. Looking at the moving average is to combine long-term and short-term, and generally follow the following principles:

1: crossover principle, short-term breakthrough in the long line is called golden fork, and the long line has an obvious upward trend, which can be used as a reference point for buying, while short-term breakthrough in the long line is called dead fork, and the long line has an obvious downward trend, which can be used as a reference point for selling. In other words, the medium and long-term line can be used as a reference for the long-term trend of stock price operation, and the short-term line can be used as a reference point for selling and buying, provided that the medium and long-term lines and short-term lines keep the same direction, which is more accurate.

2; Breakthrough pressure falls below the support principle, falls below the previous low point, can continue to be bearish, break through the previous high point and continue to be bullish.

3 wave theory, wave theory describes the moving average, rising waves and falling waves. And the callback wave. Rebound wave These are all questions that different people have different opinions.

4-dimensional height, referring to the previous high and low points, judge the dimensional height during the running of the moving average,

If the high level fluctuates, the long-term moving average has no direction, and the short-term crossing the long-term can be a selling point.

Long-term low shock. The short line crosses the long line, and the long line has just formed an upward trend and can be used as a buying point.

It is best to use short-term moving averages, such as hourly moving averages and half-hour moving averages, because the only shortcoming of moving average indicators is lag, but the assumption of moving average theory is that the stock price will move along the original trend, so once the long-term moving average indicates the direction, the stock price will generally move along the trend inertia, and the stability, reliability and accuracy of moving average indicators exceed any indicators.

If you learn the EMA well, you can apply it to any investment: futures, warrants, foreign exchange and options. You can eat it all at once. EMA is very simple and practical. But the road is very simple, no matter how much you learn, no matter how bad you use it, so EMA theory is very important.