MA of the moving average is a simple average with the daily closing price as the value; EMA needs to give a weight to the price with the same highest price and lowest price every day, and then average them. The actual moving average is more average, but because most people don't know the specific weighting method, they generally use MA more, which is more intuitive and controllable.

After answering the question of the subject, let's take you to discuss the problem of moving average in depth!

First, the definition of moving average

1, what is the average?

The moving average is an important technical indicator, which is often used by investors. It is an average line obtained by dividing the sum of closing prices in a certain period by the period. If there are five trading days in a week, add up the closing prices of these five trading days and divide them by the average value calculated by 5. Similarly, the moving averages of 10 and 20 days can also be calculated in this way.

2. What are moving averages and different colors?

Different parameters used by EMAs have different functions and reactions. Commonly used parameters are No.5, 10, No.20, No.30, No.60,120,250. Commonly used colors are white (5 lines), yellow (10 lines), purple (20 lines), green (30 lines), gray (60 lines), blue (120 lines) and orange (20th). Of course, the color is not fixed, and investors can choose according to their own preferences.

Second, the simple application of moving average

1. How to see the moving average in the trend chart?

(1) Add an EMA: First, you need to press the MA key in the stock software interface, wait for the following figure to appear, and then you can choose to press Enter.

(2) Check the moving average:

2. Which one is used for analysis?

The moving average reflects the average price and trend in a time interval, and the moving average can intuitively display the overall price operation in the past period of time. Each line has its own function and meaning. Let's briefly talk about their relationship.

(1)5-day moving average (attack line): the stock price has broken through the attack line and is also on the rise, and it is bullish in the short term. In the same way, the stock price falls below the 5-day moving average, which is short-term bearish.

(2) 10 moving average (market line): When the trading line continues to rise, if the trading line is broken by the stock price, it means that the middle line of the band rises, otherwise it falls.

(3)20-day moving average (auxiliary line): used to assist the 10 moving average, promote and correct the price operation intensity and price trend angle, and stabilize the price trend direction. If the intraday auxiliary line is in a state of continuous upswing, when the price exceeds the auxiliary line, the mid-line market of the band begins to see more and the reverse is empty.

(4)30-day moving average (lifeline): Its function is to point out the medium-term movement trend of the stock price, and the lifeline plays a strong pressure and supporting role. The same is true of day trading. If the lifeline is on the rise and the stock price soars or breaks through the line, it is bullish, otherwise it is bearish.

(5)60-day moving average (decision line): Based on this, we can understand the mid-term reversal trend of the price and guide the large-band level of the price to run in the preset trend. Regarding this moving average, the basic main force is extremely important, and it can play a vital role in the mid-term movement trend of stock prices.

(6) 120 moving average (trend line): Its function is also to point out the long-term reversal trend of prices and the large-scale operation of prices in the established trend. When the trend line is surpassed by the stock price, it will not change in a short time, and it will take at least ten days to reverse.

(7)250-day moving average (annual line): The layout of moving average is an important reference in long-term investment. The basic situation and performance of the company can be reflected through it.

The above explains the main function of each line, but it is necessary to consider multiple moving averages together to get better answers and results.

3. What are the common forms of moving averages?

(1) Long position: It means that multiple moving averages support the stock price to rise, so you are bullish.

(2) Short position: It means that there are multiple moving averages that counter the stock price, so they are bearish.

(3) Silver Valley: the figure formed when the short midline passes through the long line, with a quadrangle or triangle at the bottom, which will appear like a valley. The valley that first appears after a long period of decline is called Silver Valley.

(4) Golden Valley: There is a valley behind the Silver Valley, which is often more stable than the buying point of the Silver Valley.