Zhang Lihui: Today I will share the changes and applications of the EMA trend line, a common indicator!#BTC #热门话题 #WIF
EMA7-EMA120 are commonly used exponential moving average indicators. They are moving averages calculated based on different time periods. Here is Lihui’s detailed explanation of these indicators:
EMA7 indicator: EMA7 refers to the exponential moving average calculated based on 7 trading periods. It more sensitively reflects recent price fluctuations and can track shorter-term price trends. EMA7 is often used in short-term trading and can help track short-term price trends and quickly respond to market changes.
EMA15 indicator: EMA15 refers to an exponential moving average calculated based on 15 trading cycles. Compared with EMA7, EMA15 is smoother and can better capture medium-term price trends. EMA15 is usually used for medium-term investment analysis and can help determine the medium-term price trend.
EMA30 indicator: EMA30 refers to an exponential moving average calculated based on 30 trading cycles. It has a longer cycle and can provide a relatively stable price moving average. EMA30 is often used in medium- and long-term investment analysis to determine the medium- and long-term trend of prices.
EMA60 indicator: EMA60 refers to an exponential moving average calculated based on 60 trading cycles. Compared with the previous indicators, EMA60 is smoother and can reflect longer-term price trends. EMA60 is usually used for long-term investment analysis to identify long-term price trends.
EMA120 indicator: EMA120 refers to an exponential moving average calculated based on 120 trading cycles. It has the longest cycle and can provide the smoothest price moving average. EMA120 is often used in ultra-long-term investment analysis to identify ultra-long-term price trends.
If you want to use EMA7, EMA15 and EMA30 as entry and exit points, Li Hui reminds you to pay attention to the following changes:
Price Crossover: Observe whether the price crosses the EMA line. When the price crosses the EMA line from below and stands firmly above the EMA line, it may mean the beginning of an upward trend, and you can consider buying. On the contrary, when the price crosses the EMA line from above and stands firmly below the EMA line, it may mean the beginning of a downward trend, and you can consider selling.
Moving average crossover: Observe the crossover between different EMA lines. When a short-term EMA line (such as EMA7 or EMA15) crosses a long-term EMA line (such as EMA30) from below, it is called a "golden cross", indicating that the price may start to go up and you can consider buying. On the contrary, when a short-term EMA line crosses a long-term EMA line from above, it is called a "death cross", indicating that the price may start to go down and you can consider selling.
Moving average trend: Observe the trend direction of different EMA lines. If the trend of each EMA line is upward, it means that the price trend is rising, and you can consider buying. On the contrary, if the trend of each EMA line is downward, it means that the price trend is falling, and you can consider selling.
The relative relationship between the moving average and the price: observe the relative position between the price and the EMA line. If the price is above the EMA line and the EMA line is tilted upward, it means that the price is relatively strong and you can consider buying. On the contrary, if the price is below the EMA line and the EMA line is tilted downward, it means that the price is relatively weak and you can consider selling.
These changes and observations can be used to determine entry and exit points, but they need to be combined with other technical indicators and the overall market situation for comprehensive analysis and judgment. At the same time, Li Hui reminds everyone to pay attention to risk management and set stop-loss and profit targets to help control risks and protect capital. Most importantly, technical analysis is only part of the decision-making process, and it is also necessary to consider the impact of fundamental analysis news and other market factors.
I, Li Hui, interpret the world economic news and analyze the major trends in the global cryptocurrency circle. During my further studies in the United States, I have conducted in-depth research on BTC, ETH, LTC, DOT, EOS, BNB, SOL and other currencies. For those cryptocurrency friends who do not know how to operate, please follow the official account: Zhang Lihui to get more consultation!