Trading method using the MA (5) of the simple moving average

千万次的问 · 2023-10-08T11:52:56.000Z

As for the moving average, we generally believe that the short-period moving average running closely behind the K-line can better show the current fluctuations of the market. For convenience, multiple moving averages are usually used together. Basically, the short-period moving average rarely appears alone. But there are exceptions. As a typical short-period moving average, MA (5) is used in confirming the short-term trend of the market and exiting the market, making it very unique when used alone. The functions of the moving average mainly include prompting trends, finding support and resistance prices, or showing short-term fluctuations in the market. Long-period moving averages play the first two functions, while short-period moving averages closely follow the K-line and are better able to show short-term fluctuations in the market. . The short-period moving average appearing alone is difficult to provide direct help in trading, and MA(5) is an exception. Although this MA (5), which is only a simple moving average, is difficult to prompt entry and cannot provide clear trend direction and price prompts, it does have certain advantages in confirming short-term trends and exiting. 1. Confirm the short-term (ultra-short-term) trend of the short-term moving average. SMA(5) will appear as a positive line (red K-line) when the K-line on the market continuously closes the negative line (black K-line) or the positive line (red K-line). The support level, and the resistance level of the negative line (black K line) (that is, the K line closes above SAM (5) when it rises; when it falls, the K line closes below SMA (5), it is not recommended to move SMA (5) ) to make key price reminders). Once the short-term trend of the market is not strong or consolidates, SMA (5) will run through the K-line entity. The above is not only a description, but also a confirmation of the short-term trend of the market: if at least 2 consecutive K lines close above SMA (5) (preferably the positive line (red K line)), it will prompt If the bullish power is strong in a short period of time, the market may rise quickly; similarly, if at least 2 consecutive K lines close below SMA (5) (preferably closing the negative line (black K line)), it indicates that the market is short. During this period, short positions are strong and the market may decline rapidly. Among them, even if the reverse K line is occasionally closed, as long as the SMA (5) is not broken as a support or resistance level, there is no need to worry about the trend stopping. The significance of this application is that if you have short-term positions, when SMA(5) has the above performance, it can enhance the confidence of holding positions, and there is no need to exit the market before SMA(5) is penetrated by the reverse K-line entity.In addition, during the operation, there may be a positive line (red K line) that breaks through SMA (5), or if SMA (5) acts as a resistance level and is penetrated by a negative line (black K line), there is no need to worry for the time being. The short-term trend will continue. 2. Tips for exiting Corresponding to the aforementioned SMA (5) acting as the support and resistance level of the K line, when SMA (5) breaks through the K line entity, the unilateral trend is often suspended or the overall trend is weak. Therefore, when SMA (5) changes from support to resistance level and is suddenly penetrated by the reverse K line, this can be treated as a short-term exit signal. It should be noted that SMA (5) can be considered as an exit signal when it appears as a K-line support or resistance level. As long as SMA (5) can be used to prompt exit, the prompt time is often relatively good. Regarding this entry tip, SMA (5) can be used in conjunction with the K-line reversal pattern. When the K line appears such as piercing pattern, dark cloud cover pattern, weak evening star & morning star pattern, etc., you can determine whether short-term exit needs to be considered by observing whether the K line breaks through SMA (5). For the use of SMA(5), any period is applicable. Technology is not a panacea, and nothing is impossible without technology. DYOR#技术分析 #K线

As for moving averages, we generally believe that the short-term moving average that follows the K-line can better show the current volatility of the market. For convenience, multiple moving averages are usually used in combination. Basically, short-term moving averages rarely appear alone. But there are exceptions. MA (5) is a typical short-term moving average. Its application in confirming the short-term trend of the market and exiting the market makes it very unique when used alone.
The functions of moving averages mainly include indicating trends, finding support and resistance levels, or showing short-term fluctuations in the market. Long-term moving averages play the first two functions, while short-term moving averages closely follow the K-line and are more able to show short-term fluctuations in the market. A single short-term moving average is unlikely to provide direct help in trading, but MA(5) is an exception.
This MA (5), which is just a simple moving average, can hardly indicate entry into the market and is unable to provide clear trend direction and price indications. However, it does have certain advantages in confirming short-term trends and exiting the market.
1. Confirm the short-term (ultra-short-term) trend
When the short-term moving average (SMA(5)) closes with consecutive negative lines (black K-lines) or consecutive positive lines (red K-lines), it will be shown as the support level of the positive lines (red K-lines) and the resistance level of the negative lines (black K-lines) (i.e., when the price rises, the K-line closes above SMA(5); when the price falls, the K-line closes below SMA(5). It is not recommended to use SMA(5) as a key price prompt). However, once the short-term trend of the market is not strong or is in a consolidation, SMA(5) will cross the K-line body.
The above is not only a description, but also a confirmation of the short-term trend of the market: if at least two consecutive K-lines close above SMA (5) (preferably a positive line (red K-line)), it indicates that the market has strong bullish power in the short term and the market may rise rapidly; similarly, if at least two consecutive K-lines close below SMA (5) (preferably a negative line (black K-line)), it indicates that the market has strong bearish power in the short term and the market may fall rapidly. In this case, even if a reverse K-line occasionally closes, as long as it does not break the SMA (5) as a support or resistance level, there is no need to worry about the trend stopping.
The significance of this application is that if you have short-term positions, when SMA(5) shows the above performance, you can enhance your confidence in holding the positions, and there is no need to exit the position before SMA(5) is penetrated by the real body of the reverse K-line.
In addition, during the operation, if a positive line (red candlestick) breaks through SMA (5), or if SMA (5) is a resistance level and is broken by a negative line (black candlestick), there is no need to worry for the time being, as the short-term trend will continue.
2. Tips for exit
Corresponding to the aforementioned SMA (5) acting as the support and resistance level of the K-line, when SMA (5) breaks through the K-line body, it is often the case that the unilateral trend is temporarily suspended or the overall trend is weak. Therefore, when SMA (5) is suddenly broken through by the reverse K-line from the support and resistance level, it can be treated as a short-term exit signal.
It should be noted that SMA (5) can be considered as an exit signal only when it is displayed as a K-line support or resistance level.
Whenever SMA (5) can be used to indicate an exit, the timing of the exit is usually quite good.
Regarding this exit tip, SMA (5) can be used in conjunction with the K-line reversal pattern. When the K-line shows a piercing pattern, a dark cloud cover pattern, or a weaker Evening Star or Morning Star pattern, you can determine whether you need to consider a short-term exit by observing whether the K-line breaks through SMA (5).
When using SMA (5), any period is applicable.
Technology is not everything, but without technology, nothing is possible.
DYOR
#技术分析  #K线 