London silver investors will be afraid that their strategies will become outdated. Even if current investors can achieve stable profits, they will still have this worry. Outdated strategies mean that investors’ strategies can no longer work and they can no longer make profits in the market. If investors are afraid that the moving average will be out of date, they can consider using the following two methods to help judge and improve the credibility of the moving average.
Moving averages and deviation rates are used together. The deviation rate is actually the distance between the London silver price and the moving average. If the deviation rate is too large, the London silver price will pull back to the moving average. For example, if there is a very strong rise currently and the London silver price will rise very high and away from the moving average, then we know that the London silver price will soon return to the mean, that is, the moving average. Therefore, at this time, investors who are chasing high prices must pay great attention to it, because the price is likely to fall back after entering the market.
Use rsi to prevent misjudgment. Rsi is the Relative Strength Index, which is a familiar technical indicator that is mainly used to detect overbuying or overselling. As mentioned above, a strong rise or fall in the price of London silver will cause the deviation rate to be too large. Once it is too large, there will be a process of reversion to the mean. But when exactly will it return? Which K-line returns? This is impossible to say, so we need the RSI indicator that can judge overbought and oversold to help judge. Sometimes the deviation rate is too large, but the silver price will continue to rise strongly. We can avoid this situation to a certain extent by using the overbought analysis of the RSI indicator. For example, if the price of silver rises strongly, investors are preparing to enter the market, but are afraid of problems caused by excessive deviation. At this time, you can use the overbought judgment of RSI to see if RSI exceeds 70 or 80. If not, then you can Consider a long entry.