In foreign exchange practiceKOffensive and Defensive Techniques of Line and Moving Average (1)

1.Strong variety viewing channel



   Short term traders can focus their attention on buying strong rising varietiesKLine in5Daily moving average10Changes between daily moving averages. WhenKWhen the line falls, even if it breaks through10Daily moving average, as long as5Daily moving average not dead cross10The daily moving average indicates that the attack has not ended and positions can continue to be held. If5The daily moving average weakens and crosses dead10Daily moving average, high point chasing buyers should firmly hold positions at this time, as this attack has come to an end and prices are facing correction. As shown in the figure5-17As shown in the figureAspotKLine break10Daily moving average, but5Daily moving average not dead cross10The strong daily moving average continues;BPoint time5Daily moving average and10The daily moving average is dead cross, and the strong rise is temporarily expected to be corrected.








2.A lone army goes deep and untraceable


   Both the index and individual investment varieties have continuously broken through in a rapid rise or fall trend60Daily moving average120Moving average250After the moving average, if the direction of the market at this time is different from60Daily moving average120Moving average250The moving averages are opposite, and short-term traders must not buy or sell in the direction of the market at this time. A market without a medium to long term moving average following in the same direction is like a leading force alone in deepening. Excessive recklessness will inevitably lead to a decline and retreat due to poor food supply. As shown in the figure5-18As shown in the figureAspotKThe line continues to rise and crosses the downward attitude60Day120Day250The daily moving average, but this rapid upward trend, which is deeply rooted in isolation, is difficult to sustain, as shown in the figureBThe market at the point soon turned downward.