1, the longer the moving average, the more stable it is. It is not easy to rise and fall, and it is necessary to wait for the stock price trend to be truly clear. After all, the moving average is a trend tracking tool, which is convenient to identify whether the trend has ended or reversed and whether a new trend is forming. The moving average has a certain lag effect. When the stock price starts to fall, the EMA is still going up, and when the stock price drops significantly, the EMA will go downhill. In order to make up for this defect, we can set a number of moving averages on different calculation days to understand the overall running trend of stock prices from different periods. According to the length of time, the average can be divided into short-term, medium-term and long-term. 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 it falls side by side, the market is short.

2. The EMA has the characteristics of rising and falling. The stock price breaks through the moving average from below, and the moving average begins to move up, which can be regarded as the support line of bulls. When the stock price falls back to the moving average, it will be supported, which is the buying opportunity. This is the characteristic of the moving average. After the stock price rises or falls slowly, the moving average will slow down. When the stock price returns to the vicinity of the moving average, the moving average has lost its characteristics of boosting. At this time, it is best not to buy it. On the other hand, when the stock price falls below the EMA from above, the EMA will move down and become a resistance line for bears. When the stock price rises near the moving average, it will be resisted, which is the selling opportunity. This is the characteristic of average. After the stock price slowly falls or rises, the moving average will slow down. When the stock price returns to the vicinity of the moving average, the moving average has lost its characteristics of helping to fall, so there is no need to rush to sell at this time.

computing formula

1.N moving average = closing price on n days /N

2. Set multiple moving averages, with general parameters set as N 1 = 5, N2 = 10, N3 = 20, N4 = 60, N5 = 120 and N6 = 250. The application of the law focuses on the famous granby's law. The average line gradually changes from falling to leveling, and the price breaks through the average line from below. Although the price fell below the moving average, it immediately rose back to the moving average. At this time, the moving average continues to rise, which is still a buying signal.

3. The price trend is on the average line, and the price decline does not fall below the average line and immediately reverses and rises, which is also a buying signal.

4. If the price suddenly plummets, falls below the moving average and stays away from the moving average, it may rebound and rise, which is also a buying opportunity.