Different cycles also have different meanings. Generally, white represents a 5-unit moving average (5 days for daily line and 5 weeks for weekly line), yellow represents a 10 moving average, purple represents a 20-unit moving average, green represents a 30-unit moving average, and cyan represents a 60-unit moving average.
Long arrangement of moving averages:
The current price is above the EMA, which is arranged in the order of No.5, 10, No.20, No.30 and No.60, indicating that the recent price is higher than the forward price, indicating that the current market is on the rise and it is a bull market.
Short arrangement of moving averages:
The current price is below the moving average, and the moving averages of 60th, 30th, 20th,10th and 5th are arranged from big to small, indicating that the recent price is lower than the forward price, suggesting that the market is in a downward trend and is a short market.
Extended data
Take the daily K-line as an example, first determine the opening price and closing price, and draw the part between them into a rectangular entity. If the closing price is higher than the opening price, the K line is called the positive line, which is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity.
Many softwares can use colored entities to represent negative and positive lines. In the domestic stock and futures markets, red is usually used to represent the positive line and green is used to represent the negative line. However, investors who participate in European and American stock and foreign exchange markets should pay attention to the fact that in these markets, green is usually used for the positive line and red for the negative line, which is just the opposite of domestic habits. )
Connect the highest price and the lowest price with the entity with thin lines. The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line.
Similarly, if you draw a K-line chart with one minute's price data, it is called a one-minute K-line chart. Draw a K-line chart with one month's data, which is called a monthly K-line chart. The drawing period can be flexibly selected according to the needs, and K-line charts with periods of 2 minutes and 3 minutes can also be seen in some professional charting software.