Moving average is the most flexible and widely used technical index. Because of its simple construction method and easy quantitative test, it forms the operating basis of most automatic trading systems that conform to the trend. As the word "average" refers to, it is the arithmetic average of the closing price of the last 10 day. The so-called "dynamic" is essentially that we always use the latest price data of 10 day in our calculations. Therefore, the average array (the closing price of the latest 10) moves forward day by day with the change of the new trading day. When we calculate the moving average, the most common way is to use the closing price of the last 10 day. We add the new closing price to the array day by day, and the closing price of 1 1 from bottom to front is removed. Then, divide the new total by 10 to get a new daily average (10 daily average).

(2) Moving average: a smoothing tool with hysteresis characteristics, and the moving average is essentially a tool for tracking trends. Its purpose is to identify and show the key opportunities where the old trend has ended or reversed and the new trend is emerging. It is its responsibility to track the progress of the trend.

Moving average is a smoothing tool. The short-term average is more sensitive to price changes, while the long-term moving average is slower. In some markets, it is more advantageous to adopt short-term moving averages. On other occasions, the long-term average can give full play to its advantages.

③ Simple moving average

The most commonly used is the so-called simple moving average, which is also the arithmetic average.

④ Linear weighted moving average

In order to solve the above-mentioned weight problem, someone put forward the concept of "linear weighted moving average". In this algorithm, if the average value of 10 day is taken as an example, then the closing price of 10 day should be multiplied by 10, 9 days by 9 days, 8 days by 8 days, and so on. In this way, the later the closing price, the greater the weight. In the next calculation, we divide the sum by the sum of the above multipliers (55: 10+9+8+ 1 = 55 in this example). In any case, the linear weighted average method still does not solve the first doubt, that is, it only includes the price within the moving range of the average value.

(5), the combination of moving average

Most analysts use a combination of double EMAs or triple EMAs. Among them, the various averages are calculated at the closing price. The most commonly used moving average days are 5 days, 10 days, 20 days and 40 days, or some variants of these numbers (for example, 4 days, 9 days and 18 days). A futures product must have a set of best moving averages. Choosing the best combination of moving averages requires complicated calculation by computer, which is difficult for ordinary investors to do at present. However, investors can compare and estimate the moving average combination of a certain futures variety and choose the best moving average combination that suits them.

6. The principle of moving average trading.

Generally, the trading method using EMA is as follows:

First, buy when the closing price is higher than the average; Sell when the closing price is lower than the average;

Second, buy when the market price is from bottom to top and exceeds the average line; Sell when the market price falls below the top-down average line;

Third, use two moving averages with different time lengths to buy and sell. Buy when the short-term moving average rises above the long-term moving average from bottom to top; If the short-term moving average is from top to bottom, it will be sold below the long-term moving average;

Fourth, buy when the closing price is higher than the short-term and long-term moving averages, and close the position immediately when the price is lower than one of the moving averages; Sell when the closing price is lower than the short-term and long-term moving averages, close the position immediately when the price is higher than one of the moving averages, and so on.

Trading with moving averages has the same characteristic of focusing on the basic trend and ignoring the temporary fluctuation of prices. The disadvantage is that the adaptability is not strong.