The moving average index is actually the abbreviation of moving average index. Because this indicator is an important indicator reflecting the price trend, once it is formed, it will last for a period of time, and the high point or low point formed by the trend operation has the function of blocking or supporting respectively, so the point where the moving average indicator is located is often a very important support or resistance level, which provides us with a favorable opportunity to buy or sell, and the value of the moving average system lies in this.
Its origin:
The EMA was founded by American investment expert jogepsb ganvle and evolved from the "three trends theory" of Dow's stock price analysis theory. Digitize Dow's theory, and predict the short-term, medium-term and long-term change direction of stock price from the change of numbers, so as to provide basis for investment decision.
The moving average MA, also called moving average and cost line, represents the average cost of buying stocks in a certain period, reflecting the strength and running trend of stock prices in a certain period.
Arithmetic moving average is to add up the closing prices of n days and divide by n to get the arithmetic moving average of the nth day. Judging from its calculation method, there are the following kinds.
Technical characteristics of EMA: tracking trend, lag, stability, helping up and down, support line and pressure line characteristics.