Everyone knows the moving average theory well and knows its existence. The main disadvantage is the lag of the moving average in time. The specific performance is as follows: the moving average has a "dead cross", once the price has fallen sharply, investors are deeply involved; the price has begun to show a "golden cross" arrangement, and the price has risen sharply, and the risk of chasing higher is relatively high. There are many such problems, and this is also the main problem that plagued investors who used the moving average theory in the early stage.
The method to overcome the time lag of the moving average theory Ziying believes that there are mainly the following points:
The purpose of the first clear moving average theory
The moving average theory is a trend theory whose main purpose is to grasp the overall trend of prices or the market, determine the general direction of investors' investment transactions and ensure that investors will not make major mistakes. As for the timing of short-term trading, the moving average theory is relatively weak. More rely on other technical theories such as K-line and K-line form.
Second, divide the time combination of the moving average
The combination of moving averages was classified above. Short, medium and long moving averages in different periods are used to predict the trend of prices or indices in different periods. To overcome the time lag of moving averages, time combinations should be arranged well. For short-term trading and other operational wins, try to shorten the date of the moving average.
Third, play the role of a single moving average
Some single moving averages in the trading market are very useful. For example, the annual line (360), the semi-annual line (120 days), and the quarter line (60 days) are important turning points on the technical side; the effective breakthrough of the 60-day line is a sign of the medium-term market; the 120-day line is long-term long and short The dividing line; the 5-day moving average is an important reference line for short-term trading.