Tech Analysis To Identify Trend Using Moving Average - MA 📈 Day 1 (AMC As Example)
Yoyoyo, let's do this guys!
What is Moving Average (MA)? It's theaverage priceof a futures contract or stockover a set periodof time. U canadjustthetime periodto ur preference. Bydefault/most common used is14 days.
Dam, why I'm so stupid as to mentioncommon usedis14 daysfor MA... created more work for myself... Without further ado, let reset ur MA setting back to default as shown in the image steps 1-5🚶♂️below(Note: This is mobile📱version):
Step 1:
Step 2: (For mobiledrag slideto get to "Indicators")
Step 3:
Step 4: (Reset to "default"ifu thinkthere is a need to)
Step 5: (Input 14 towhicheverMA sequence u desire. In my case, I choose MA2 as my 14 days. Notice thecolour. Note:You canreducethenumbersof MAcurvebyun-checkingthem)
Hurray! Finally all done!!! OF COURSE...NOT!!! This is just all the basic setup.
NOW! Let's move on to how to use the MA of14 daysas shown in the picture 📸 below:
Purple= Take notice of urMA curve colour (Note: For mine, isLight Bluecolour for the14 days MA curve) Green= Up trend (abovetheLight Blue) Yellow= Down trend (belowtheLight Blue) Note:I realised my "circling" is out of shape/not that accurate. But i think u guys get the idea 💡. Cut me some slack on the "circling"... Monkey 🐒 cannot draw perfect "circling". PS, my art 🎨 just scored 50+/100 mark.
Now, question... Where should u buy? Thegreenor theyellow?
OK 5 sec up
For me, I will buy in theyellowbecause it's likely the cheapest point. Some/most investors will say is thegreenas it is the period that it start to turnup trend. My conculsion is uownself decidefor yourself. Why? Because MA isnot the onlyindicator that factor in for my purchasing of the stock at that price.
Although it says common use is14 days, but u can choose alonger period, for example 50 days/100days if u are alonger terminvestors toavoid market volatility. Why 14 days is the most common used? Neither do I know. Askthe onewho invented the MA. Heclaimedthat14 daysgive him themost accurate results.
I may not explains that well for MA. So I will refer some others' explanation about technical analysis which I find it not bad.
Milk The Cow
OP
:
If want video guide, just go youtubeexplore urself. Indicator guidance for MA cannot be that much difference from the origin definition.
NANA123
:
Very concise and informative. It gets right to the point, so you understand what’s going on in market trading. The application of TA to reel trading is invaluable!!!
Milk The Cow
OP
:
Well, maybe for some of u guys can just choose 13 days or 15 days. It's because in Chinese, "14" mean "sure ". For the western, I heard that "13" is an unlucky number.
So I think for those who have crazy belief in this auspicious thing, I guess "15" is the best choice.
For me, it does not really matters as I'm more of a scientific person.
You must follow the expertise's way & ur chance of win is maybe a bit higher?
Meta Moo
:
Great, it's such an informative post; you made this indicator easy to understand and use in moomoo. I've seen your hard work in this TA challenge.
Milk The Cow OP : If want video guide, just go youtubeexplore urself.
Indicator guidance for MA cannot be that much difference from the origin definition.
NANA123 : Very concise and informative. It gets right to the point, so you understand what’s going on in market trading. The application of TA to reel trading is invaluable!!!
Milk The Cow OP NANA123 : Ty
Milk The Cow OP : Well, maybe for some of u guys can just choose 13 days or 15 days.
It's because in Chinese, "14" mean "sure ".
For the western, I heard that "13" is an unlucky number.
So I think for those who have crazy belief in this auspicious thing, I guess "15" is the best choice.
For me, it does not really matters as I'm more of a scientific person.
You must follow the expertise's way & ur chance of win is maybe a bit higher?
Meta Moo : Great, it's such an informative post; you made this indicator easy to understand and use in moomoo. I've seen your hard work in this TA challenge.
Milk The Cow OP Meta Moo : Ty