Li Hui today shares the application of the commonly used technical indicator MA moving average#非农数据 #热门话题 #BTC🔥🔥🔥🔥
MA5, MA7, MA15 and MA30 are common moving average indicators. Their different periods can provide smooth views of different lengths to help analyze price trends and market changes. The following is Li Hui's explanation of the changes and trends between them:
1. MA5 (5-day moving average): MA5 is the average price of the past 5 trading days. Due to its shorter cycle, it can react to the latest price changes more quickly, so it has a higher sensitivity for short-term traders. Li Hui believes that when the price crosses MA5, it may indicate the beginning of an upward trend in prices; and when the price crosses MA5, it may indicate the beginning of a downward trend in prices.
2. MA7 (7-day moving average): MA7 is the average price of the past 7 trading days. Compared with MA5, its period is slightly longer and can provide a slightly smoother perspective. Li Hui believes that when the price crosses MA7, it may indicate that the price is starting to rise; when the price crosses MA7, it may indicate that the price is starting to fall.
3. MA15 (15-day moving average): MA15 is the average price of the past 15 trading days. Compared with the short-term MA5 and MA7, it can better show the trend of medium-term prices. Li Hui believes that when the price crosses MA15, it may mean that the price has entered an upward phase; and when the price crosses MA15, it may indicate that the price has entered a downward phase.
4. MA30 (30-day moving average): MA30 is the average price of the past 30 trading days. Due to its long cycle, it can better eliminate short-term market noise and show a longer-term price trend. Li Hui believes that when the price crosses MA30, it usually means that the price starts to rise; when the price crosses MA30, it may mean that the price starts to fall.
By observing the changes between these moving averages, several trend interpretations can be drawn:
- When the price tends to rise, and the short-term MA5 and MA7 cross over the long-term MA15 and MA30, it may indicate that the price is in a strong uptrend.
- When the price tends to decline, and the short-term MA5 and MA7 cross below the long-term MA15 and MA30, it may indicate that the price is in a strong downtrend.
- When prices intersect with the short-term and long-term moving averages without a clear upward or downward relationship, it may mean that the market is in a state of consolidation or unclear trend.
It should be noted that Li Hui believes that these explanations are only trend hints in general situations, and specific analysis needs to be combined with other technical indicators and market environment for comprehensive judgment. In addition, different traders may have different choices and applications for moving averages, so Li Hui will adjust these cycles to adapt to specific market analysis based on personal needs and trading strategies.
I, Li Hui, interpret the world economic news and analyze the major trends in the global currency 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 who do not know how to operate, please follow the official account: Zhang Lihui