According to the length of time, the average can be divided into short-term, medium-term and long-term. Generally, the short-term moving average is 5 days, 10 days. The intermediate period is 30 days and 65 days; There are 200 days and 280 days in the long term. Can be used alone or at the same time.
Comprehensive observation of long, medium and short-term moving averages can judge the multiple tendencies of the market. If the three moving averages rise side by side, the market will be long; If the three EMAs fall side by side, the market is short.
After all, the moving average is a tool for trend tracking, which is convenient for identifying opportunities when the trend has ended or reversed and the leading trend is forming or continuing. It does not lead the market, but faithfully follows the market, so it has the characteristics of lag, but it cannot be faked.
Extended data:
superiority
1, the moving average can help investors judge the signals of selling and buying. When the exchange rate effectively falls below the moving average, it is a selling signal; When the exchange rate effectively breaks through the moving average, it is a buy signal.
2. The moving average can simply and quickly show the general trend of exchange rate fluctuations.
Disadvantaged
1. It is difficult for investors to make accurate selling or buying operations only by relying on the buying signal and selling signal of the moving average. Usually, the moving average needs to be combined with other technical indicators.
2. When the market is in a consolidation situation, the selling and buying signals reflected by the moving average will appear frequently, which is also the time when investors are most easily cheated.
3. The moving average changes slowly, so it is difficult for investors to grasp the trough or peak of the exchange rate simply and conveniently. As far as the long-term moving average is concerned, this disadvantage is even more conspicuous.
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