Moving average In the market economy, making money is nothing more than reducing costs or increasing income in order to obtain higher profits. As far as the stock market is concerned, it is to buy low and sell high. The lower you buy, the better. The higher you sell, the better. However, it is not a personal will for the stock price to jump up and down.

Decide. Therefore, investors, especially retail investors, must grasp the general trend and follow the trend. The contrarian operation is often a dead duck on the shelves.

1, at the beginning of the rising market, the short-term moving average breaks through the long-term moving average from bottom to top, and the intersection formed is called the golden cross.

2. The crossover formed when the short-term moving average falls below the medium-and long-term moving average is called the death crossover. It indicates that the stock price will fall. As shown above, the yellow 5-day moving average crosses the purple 10 moving average; 10 moving average crosses the green 30-day moving average.

Both are death crosses.

3. When the rising market enters a stable period, the moving averages of 5th, 10 and 30th are arranged from top to bottom and moved to the upper right, which is called long arrangement. It indicates that the stock price will rise sharply.

4. In the falling market, the 5-day, 10, and 30-day moving averages are arranged from bottom to top, and move to the lower right, which is called short arrangement, indicating that the stock price will fall sharply.

Finally, remind investors that investment is risky and they need to be cautious when entering the market, but please keep a good investment mentality while being cautious. That's what I'll explain to you. I hope you can review and analyze it when you go back. Because of the time, let me talk about it first. To be continued, if you want to know more about EMA, you can search Baidu's website, and we will give you detailed answers. Here you will solve your confusion and find the answer.