C4 is the average of cells A2, A3 and A4, C5 is the average of cells A3, A4 and A5, and so on. By calculating the average value of this movement mode, the influence of numerical fluctuation can be effectively eliminated. For example, the difference between the maximum and minimum values of the moving average in Figure 9-86 is 9, while the difference between the maximum and minimum values in the original data is 2 1.

Calculation method:

N-day moving average = sum of n-day closing prices/n.

According to the length of time, the average can be divided into short-term, medium-term and long-term. Generally, the short-term moving average is 5 days, 10 days. The intermediate period is 30 days and 65 days; There are 200 days and 280 days in the long term.

Can be used alone or at the same time. Comprehensive observation of long, medium and short-term moving averages can judge the multiple tendencies of the market. If the three moving averages rise side by side, the market will be long; If the three EMAs fall side by side, the market is short.

After all, the moving average is a tool for trend tracking, which is convenient for identifying opportunities when the trend has ended or reversed and the leading trend is forming or continuing. It will not be ahead of the market, but faithfully follow the market, so it has the characteristics of lag, but it cannot be faked.