Similarly, using the moving average to predict the trend also has certain advantages and disadvantages. Different from trend lines, short-term moving averages and long-term moving averages are more sensitive and convenient for forecasting trends.
For intraday trading, generally speaking, the 5-day moving average and the 10 moving average can be used together to grasp the overall trend. If the strong rise follows the 5-day moving average, the callback will be supported at the 10 moving average. If it falls below the 10 moving average, it is necessary to add positions cautiously.
If it is a trend transaction, you can refer to the 30-day moving average, which is generally an important dividing line for the trend of futures varieties. Whether it is an effective break or a breakthrough, there will be a trend. However, the biggest disadvantage of the moving average is its lag. No matter what period you are referring to, you can't confirm it until after the close. K-line morphological analysis just solved this problem.