How to use the moving average for each time period. The foreign exchange moving average is a technical analysis indicator commonly used by traders in the foreign exchange market. However, the foreign exchange moving average is a relatively complex technical indicator. The moving averages of different time periods have different functions and methods of use. Today, Yuhui International Network will give you a detailed introduction to the use of moving averages in each time period.
5-day moving average. The 5-day moving average is also called the attack line, and its main function is to promote the exchange rate to form an attack trend in the short term. The 5-day moving average can guide the rise and fall of the exchange rate to a certain extent. During the trading process, when the exchange rate enters a downward phase, the 5-day moving average can become an important tool for traders to kill.
10-day moving average. The trader line is also called the market line. The main function of the 10-day moving average is to promote the continuous rise or fall of the exchange rate in the swing market. When the exchange rate enters the downward wave, the 10-day moving average can be used to encourage the exchange rate to fall repeatedly.
20-day moving average. The 20-day moving average is called the auxiliary line. As the name suggests, its role is to coordinate the trading line, help correct the operating strength and trend angle of the exchange rate, and at the same time stabilize the operating direction of the price trend. The 20-day moving average is a strong resistance when the exchange rate rebounds and can be used to repeatedly cause the exchange rate to fluctuate.
30-day moving average. The 30-day moving average is called the lifeline, and its main function is to indicate the mid-term trend of market prices. The 30-day moving average has a strong support and resistance role in the mid-term swing upward trend. Traders can use the 30-day moving average to suppress price rebound behavior and promote continued price weakness.
As for the usage method of each time period moving average, I will introduce it to you today.