What are the tips for using expma indicator?
Technical indicators can be said to be a very important technology in the process of stock trading. If you enter the stock market without knowing anything about technical indicators, you will not be able to make any money in the stock market. So today the editor is here to sort out the relevant knowledge about stocks, let’s take a look!
Tips for using the expma indicator
It is understood that the EXPMA indicator is used to judge the future of stock prices In the stock selection method, the EXPMA indicator consists of two lines, a white line and a yellow line. If the white line crosses the yellow line from bottom to top, usually the stock price will continue to rise until the two lines When the lines cross, the time to sell comes. If the white line and the yellow line always maintain a distance and move upward, it means that the stock market outlook will continue to be optimistic. When the stock price falls back to the vicinity of the white line again, but does not break through the yellow line, then this phenomenon of falling back is also Good time to buy.
The expma indicator is a special trick. This indicator is generally a medium- and short-term stock selection indicator, which is more suitable for investors who focus on the medium and short-term. Buyers based on this signal have profit opportunities, but for the mid-term For investors, its reference significance seems to be greater, mainly because this indicator has great stability and low volatility.
EXPMA indicator tactics application
As a trend indicator, the main function of the EXPMA indicator is to calculate the arithmetic average of the closing price of the stock to determine the future price of the stock. Prejudging the trend of trends and price fluctuations is an important indicator for price trend judgment. How to apply the tactics of this indicator?
It is understood that in general software, EXPMA only has two moving averages, namely EMA12 and EMA50, which are not enough in actual combat. It is recommended to increase it to four: short-term, mid-term, Long-term and ultra-short-term. If expma is set, find the "Formula Manager", open it and "New". It is recommended to use "EXMA" for the formula name. Select "Main Image Overlay" on the right and click "OK". An own EXMA formula is ready.
The tactical application of the EXPMA indicator. The EXPMA indicator consists of EXPMA1 (white line) and EXPMA2 (yellow line). When the white line crosses the yellow line from bottom to top, the price will usually continue to rise, then The day when these two lines form a golden cross is a good buying opportunity. When the price of a product moves away from the white line, the price of the product will soon fall back and then move along the white line. It can be seen that the white line is a major support point.
expma weekly strategy
To make good use of technical indicators, choosing the correct parameters is a necessary prerequisite. The accuracy of the signal sent by the same indicator under different parameters will vary. There is quite a difference. As a supplement to the moving average indicator, many investors want to know how to set the parameters of the expma indicator.
The EXPMA indicator is used on the weekly line, and the parameter settings are 12 and 50. Among them, 12 represents short-term support and pressure; 50 represents long-term support and pressure. We call this long-term line the watershed between bull and bear markets. If a stock can continue to rise and bullish, then it must stand above the long-term line of 50. Use this indicator to select good stocks, and then use the stock price to stand above or fall below the 20-day moving average (20MA) as the buying and selling point.
When the stock price stands on this long-term EXPMA line, the stock price shows a long-term bull trend; when the stock price falls below this long-term line and the short-term line and the long-term line cross, the stock price shows a bullish trend. Gradually declining bear market trend.
Stock selection is very important for operations, because the proportion of strong stocks in the market generally does not exceed 20%. Using EXPMA weekly stock selection is to select less than 20% of the bull stocks. Find them out. For investors, if they select stocks based on this indicator once a week to eliminate the weak and retain the strong, it can provide high-quality alternative stock resources for future operations and eliminate all weak stocks from their sight. If there is still the protection of monthly EPXMA, the market will be more stable and healthy, and the bull market characteristics will be more obvious.