The Guppy moving average is a hole invented by Mr. Dai Ruo, an Australian investor. Moving average is a short-term practical usage that can help investors capture band profits. What is the use of Guppy moving average? Explained in detail below.
The composition of the proportional line is very simple. It consists of two sets of exponential moving averages, namely the short-term moving average group and the long-term moving average group. The short-term moving average group: 3, 5, 8, 10, 12, 15, and the long-term moving average group: 30, 35, 40, 45, 50, 60. The long-term group represents the behavior of investors and the trend movement of the market; the short-term group represents the behavior of speculators and represents the short-term emotional fluctuations of the market.
Probability advantages can be found in trading. When the Guppy moving average confirms the sequence of the trend, the probability of an immediate price reversal is extremely low. You can join the trend according to your own judgment and make profits based on the trend. Even in a perfect trend, prices don't go up or down all the time, and the market needs a breather. Take an uptrend as an example. If speculators cause the short-term market to be overbought, prices will retrace slightly, and the corresponding short-term groups will turn downward and contract. When the market adjustment ends, the price will rise again, corresponding to the turnaround and divergence of the short-term group on the Guppy moving average. This is the best buying point to join the trend again, which is often accompanied by rapid price increases.
After buying at the best buying point in the upward trend, if the price fails to rise effectively in a short period of time, the upward trend is doubtful, and you can use time to stop the loss and exit.
1. How to set the Guppy moving average? The Guppy Moving Average consists of a short-term moving average and a long-term moving average. It is widely used in stocks, futures, foreign exchange and other markets. It is actually a weighted compound moving average. When setting the Guppy moving average, open the trading software, go to the trading trend interface, click on the moving average MA with the mouse, and choose to adjust the moving average parameter settings. Conventional trading software can set 10 different moving average parameters, which are set in order of length to short-term moving averages of 1, 3, 5, 8, 10, 12, and 15 days, and moving averages of 30, 35, 40, 45, 50, and 60 days. In this way, the Guppy Moving Average is set.
2. Investment skills of Guppy moving average. Simply put, the investment technique of Guppy moving average is to determine the trend of investment products through long-term moving averages and determine entry opportunities through short-term moving averages. For example, the long-term direction of an investment product has a long moving average and an upward trend. During the callback process, when the callback reaches the support level, the short-term moving average forms a golden cross and breaks upward, forming a buying opportunity. Choose to buy. This is the operation method in which the long-term moving average sets the trend and the short-term moving average sets the buying point. Guppy moving average is actually a trading strategy among moving averages. It effectively divides the trend of moving averages, and its use method is similar to ordinary moving averages.