Moving Average K Line smart settings Cycle Set Money Tips

Category: Money tips Release Date: 2006-10-29

Moving average line is a trend following indicator, by its very nature, moving average lag behind the market behavior, it can not capture the price movement of the top and bottom, but the short-term moving averages are more sensitive to price behavior, long-term average of the price behavior is more retardation, in some markets, better short-term moving averages, in some markets, to take a long-term moving averages will be more successful this way, the cycle set has become the moving average line and use the important issues.

Commonly used in the stock market averages: 5,10,30,60,120,240.

Futures commonly used moving averages: 5,10,20,40.

Fibonacci sequence:

Fibonacci series in the moving average line also has a very good performance. If 5,8,13,21,34,55 so. One 5,13,21,34's performance in many markets are surprisingly good.

Self-optimization:

Investors set cycle, it should start to start commonly used. Many facts prove that optimize not be able to achieve good results, if you are focused on several markets, you can try to optimize the historical data, if you also care for more than the market, it is best to choose a fixed set of methods. Note that these commonly used cycles applicable not only to the daily chart also applies to weekly charts and monthly charts.

Note: The stock and futures are intertwined, and the following examples, although examples of futures should be able to bypass them to go to the actual stock.