Six moving average commonly used in gold speculation

Fried gold

If you want to succeed in gold speculation, you need some auxiliary tools to analyze the market. Only in this way can you grasp a good opportunity. So which moving average can we use? The following are the six moving averages commonly used to observe the trend of gold price for investors' reference.

1. Attack line -- 5-day moving average

Its main role is to promote the price to form an attack situation in the short term, and constantly guide the price to rise or fall. If the attack line rises steeply and forcefully (without bending and weakness), it means that the price has strong short-term explosive power. On the contrary, it is weak. When the spot gold enters the decline stage, the attack line is also an important weapon to kill down. If the downward angle is steep, the strength of killing down is extremely strong. In the real market, when the price breaks through the attack line and the attack line is steep upward, it means that the short-term market has started. At this time, we should actively do long in the short term. When the gold price breaks through the attack line, and the attack line turns downward, it means that the adjustment or decline of the market has started. At this time, it should be short-term.

2. Trading line -- 10 day moving average

Also known as the market line. The main role of the trading line is to push the price up or down in a round of intermediate band market. If the trading line rises steeply and forcefully, it means that the price rises strongly in the medium term. On the contrary, it is weak. Similarly, when the price enters the falling band, the trading line can also cause the price to decline repeatedly. In the real market, when the price breaks through the trading line and the trading line is in a continuous upward attack state, it means that the band midline market has started. At this time, we should actively do long in the short term. Similarly, when the price breaks through the trading line and the trading line turns downward, it means that the rising market has ended and the large band adjustment or falling market has started. At this time, we should short the middle line.

3. Auxiliary line -- 20 day moving average

The main function of the auxiliary line is to assist the operation line, promote and revise the price operation strength and trend angle, and stabilize the price trend operation direction. At the same time, it also plays a role in correcting the slow response of lifeline. In a round of band rising market, if the rising angle of the auxiliary line is large and steep, it means that the price of the central line band is very strong. On the contrary, it is weak. Similarly, when the price is in the falling stage, the auxiliary line is a strong resistance when the price rebounds, and it can correct the price falling track, repeatedly causing the price to fluctuate. In the real market, when the price breaks through the auxiliary line, and the auxiliary line is in a continuous upward attack state, it means that the band midline market has started. At this time, we should actively do long in the short term. Similarly, when the price breaks through the auxiliary line and the auxiliary line turns downward, it means that the staged mid line rising market has ended, while the staged adjustment or falling market has started, so the mid line should be short.

4. Lifeline -- 30 day moving average

The main function of lifeline is to indicate the medium-term trend of price. In a medium-term upward trend, lifeline has a strong role of support and resistance. If the rising angle of lifeline is steep and powerful, it means that the medium-term rising trend of price is strong, and the main force can be decisively attacked by washing or adjusting to this position. On the contrary, the trend will be weak and the support will be weak. When the spot gold enters the downward trend, the lifeline can also suppress the price rebound behavior and make the price continue to weaken. Lifeline is the life basis of a round of big band up or down market. In the real market, when the price breaks through the lifeline and the lifeline is in a state of upward attack, it means that the midline big band market has started. At this time, the midline should actively do long. Lifeline in a large band market stage adjustment process, will not be easily broken down. When the gold price breaks through the lifeline and the lifeline turns downward, it means that a larger level of adjustment or decline has begun. At this time, we should actively short the middle line.

5. Decision line -- 60 day moving average

The main function of the decision line is to point out the medium-term reversal trend of the price and guide the large band level of the price to run in the established trend. When the price volume breaks through the decision-making line up or down, it means that a round of large-scale reversal market has started, and the corresponding trading decision should be made. When the price of gold breaks through the decision-making line, it will not run in the opposite direction in a relatively short period of time, that is, the main force will make the action of luring more or less, and at least it will run above or below the decision-making line for about 10-25 trading days. In the actual combat, all the main forces have a clear understanding of the decision-making line. The decision line is of great significance to the market nature in the trading plan of major institutions. Therefore, when the price breaks through the decision-making line and the decision-making line turns upward, it means that the trend of the middle line and the bull market have been formed. At this time, the middle line should be actively long. Once a decision is made, it will not be changed easily. Therefore, once the gold price breaks through the decision-making line, it will not easily break through this decision-making support in the periodic adjustment. However, once the gold price breaks down the decision-making line and the decision-making line turns downward, it means that a round of large-scale downward market has started. At this time, the central line should be decisively short.

6. Trend line -- 120 day moving average

Like the decision line, the main function of the trend line is to point out the medium and long-term reverse trend of the price, and guide or guide the large band and large level operation of the price in the established trend. When the price volume breaks through the trend line upward or downward, it indicates that the general trend of gold price has been reversed, and corresponding trading decisions should be made. Generally, when the price breaks through the trend line, it will not run in the opposite direction in a short time. Even if the main force makes the action of luring more or less, it will run above or below the trend line for at least 10 trading days or several trading weeks.

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