Generally speaking, the 10 moving average and the 20-day moving average can be used as reference, especially the daily K-line.
In futures trading, the moving average is only one of the trend indicators. In addition, it is recommended to consider the shock index and recommend a KDJ, which is very useful. Of course, pay attention to the cycle and variety. Don't copy mechanically. I suggest you learn the procedural trading, you can come back from the exam, at least you know what you are doing.
Characteristics of moving average:
Track trends
Track the trend. Pay attention to the price trend, follow this trend and don't give up easily. If the rising or falling trend line can be found from the stock price chart, then the curve of MA will be consistent with the direction of the trend line, which can eliminate the fluctuation of the intermediate stock price in this process. The stock price chart of raw data does not have this function of tracking trends.
Hysteresis property
Moving average
Lag. When the original trend of the stock price is reversed, because the horse follows the trend, the horse's action is often too slow, and the speed of turning around lags behind the general trend. This is a big weakness of horses. When the horse signaled a reversal, the stock price turned around deeply.
stability
Stable. Under normal circumstances, the longer the moving average is, the more stable it is, that is, the moving average will not easily fluctuate up and down, and only when the stock price really rises significantly will the moving average extend upward. Moreover, at the beginning of the stock price decline, the moving average is upward, and it will not go down until the stock price falls sharply. This is the biggest feature of the moving average. The shorter the moving average, the worse the stability, and the longer the moving average, the stronger the stability, but it also makes the moving average have the characteristics of lagging response.
Help rise and fall
Help rise and fall. When the stock price breaks through MA, whether it is an upward breakthrough or a downward breakthrough, the stock price has the desire to continue to take another step towards the breakthrough, which is the help of MA.