Moving average bonding is usually used to predict the turning point of short-term trends and is an important operational strategy. When there is a trend of moving average bonding, if the price breaks through the moving average, it means a turning point in the short-term trend, and investors can use this signal to judge admission and exit. If the price falls below the moving average, it means that the current trend is downward and should be sold or left. If the price goes above the moving average, it means that the current trend is upward, and you can buy or add positions at this time. It should be noted that the signal generated by EMA bonding can only be used for short-term trading strategies, and the long-term trend is not affected by EMA bonding.
Although moving average bonding is a reliable short-term trading strategy, it is not suitable for all markets and all time periods. Especially when the market is in a volatile market and the price fluctuation is small, the effect of moving average bonding may be very insignificant, and the trading decisions made from it may also end in failure. In addition, if we only rely on the adhesion form of the moving average without combining other technical analysis indicators to judge the trend, the risk will also increase. In short, investors need to rationally treat EMA bonding as an auxiliary tool, not the only decision-making factor.