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TA Challenge: How do you identify trends with moving averages?
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Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks

What is disagreement: when bulls and bears scold each other.

However, this happens a lot, because many and short sellers scold each other almost all the year round. Therefore, there are many kinds of differences, just remember three:

Divergent rise (also known as volume rise): shareholding.

Huge divergence: sell high, buy low.

Shrinking differences: buying opportunities.

For example (below, the white line is the 5-day moving average, and the yellow line is the 20-day moving average):

Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
Volume rose, back to the 20-day moving average, shrinking sideways, buying opportunities.

Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
$SINOTRUK (03808.HK)$Strategies such as Shouyang breakthrough are particularly effective.
Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
There are too many success stories, so let's look at the failures:

Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
The trend in April this year, pay attention to the last volume K line, is a break down, so failed.

Find out the reason and enlarge the picture. Huang Kuangzhong is the location of the above picture:
Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
You can find:

The stock has risen for a while before.

2 the upward volume of this stock is not obvious.

The big cycle of the stock is not in a good position, facing an all-time high at the top, Alexander.

Technical Analysis Challenge Day 3-EMA: moving average buying method for trend stocks
The stock directly broke through the 20-day moving average, this kind of ticket had better be combined with horizontal support to participate, just like Semiconductor Manufacturing International Corporation above. However, it is pulled up too high in front, and the support position is too far away. Although it shrinks in the back, it does not belong to this method.

Summary:

There are also many cases of failure, and there are thousands of reasons for failure. Sum up them as much as possible.

I can remind you that successful cases generally have the following characteristics:

The big cycle belongs to the trend of shock, Shouyang breakthrough.

The first breakthrough wave is not high.

The inherent logic of driving up share prices can withstand deliberation.

On the other hand, the things to pay attention to are:

If the whole has not been fully adjusted, do not participate easily.

If the previous wave is too high, don't rush to participate.

The logic is not correct, do not participate in those who are emotionally uplifted and do not understand.

Finally, when you see a good stock that has been pulled up, you don't have to rush to chase it, right?

You've already been told a way to participate, wait patiently for the "shrinking divergence" point near the 20-day moving average.
Disclaimer: the above non-recommended stocks are for review and discussion only
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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