That is the 5-day moving average. Its main function is to promote the formation of an attacking trend in prices in the short term, continuously guiding prices to rise or fall. If the upward angle of the attack line is steep and strong (without any bending or weakness), it indicates that the price has strong short-term explosive power. On the contrary, it is weak. Similarly, when the price enters a downward phase, the attack line is also an important weapon for killing. If the downward angle is steep, the killing force is extremely strong.
In practical trading, when the price breaks through the attack line and the attack line shows a steep upward trend, it means that the short-term market has started, and at this time, it is advisable to actively go long in the short term. Similarly, when the price breaks through the attack line and the attack line turns downwards, it means that an adjustment or downward trend has already begun, and short-term short selling is recommended.
2、 Trading line:
It refers to the 10 day moving average. It is also known as a market line. The main function of the trading line is to drive prices to continue rising or falling in a mid band market. If the upward angle of the trading line is steep and strong, it indicates a strong mid-term price increase. On the contrary, it is weak. Similarly, when the price enters a downward trend, the trading line can also cause the price to repeatedly fall.
In practical trading, when the price breaks through the trading line and the trading line shows a continuous upward attack, it means that the medium-term market trend has started. At this time, it is advisable to actively go long in the short term. Similarly, when the price breaks through the trading line and the trading line turns downwards, it means that the upward trend has ended and a large wave of adjustment or downward trend has begun. At this time, it is advisable to short the medium-term.
3、 Auxiliary line:
It refers to the 20 day moving average. The main function of the auxiliary line is to assist the trading line, promote and correct the strength and trend angle of price operation, and stabilize the direction of price trend operation. At the same time, it also plays a role in correcting the delayed response of the lifeline. In a wave of upward trend, if the auxiliary line has a large and steep upward angle, it indicates that the price of the middle line has a strong upward trend. On the contrary, it is weak. Similarly, during the downward phase of the price, the auxiliary line is a powerful resistance when the price rebounds, and can correct the downward trajectory of the price, repeatedly causing the price to fluctuate and fall.
In practical trading, when the price breaks through the auxiliary line and the auxiliary line continues to attack upwards, it means that the medium-term market trend has started, and short-term active long positions should be taken at this time. Similarly, when the price breaks through the auxiliary line and the auxiliary line turns downwards, it means that the mid-term upward trend has ended, and the mid-term adjustment or downward trend has begun. At this time, the medium-term short selling should be done.
4、 Lifeline:
It refers to the 30 day moving average. The main function of lifeline is to indicate the mid-term operating trend of prices. In a medium-term upward trend, the lifeline has strong support and resistance effects. If the upward angle of the lifeline is steep and strong, it indicates a strong mid-term upward trend in prices, and the main force can decisively attack by washing up or adjusting to this position. On the contrary, the trend will be weaker and the support will also weaken. Similarly, when the price enters a downward trend, the lifeline can also suppress the rebound behavior of the price and promote the continuous weakening of the price.
Lifeline is the foundation of a major upward or downward trend. In practical trading, when the price breaks through the lifeline and the lifeline is in a turning upward attack state, it means that the mid line large band market has started, and at this time, the mid line should actively go long. The lifeline will not be easily broken through during the stage adjustment process of a large wave market. However, when the price breaks through the lifeline and the lifeline turns downwards, it means that a larger level of adjustment or downward trend has already begun, and at this time, the middle line should be actively shorted.
5、 Decision line:
It refers to the 60 day moving average. The main function of decision lines is to indicate the mid-term reversal trend of prices and guide the operation of price bands within the established trend. When the price breaks the decision line upwards or downwards in volume, it indicates that a large-scale reversal market has started, and corresponding trading decisions should be made in the near future. When the price breaks through the decision line, it generally does not move in the opposite direction in a short period of time. That is, if the main force makes a bullish or bearish move, it will at least run above or below the decision line for about 10-25 trading days before reversing.
In the face of the game, all the main players have a clear understanding of the decision-making line. The decision line plays a crucial role in determining the nature of the market in the trading plans of major institutions. Therefore, when the price breaks through the decision line and the decision line is in a turning upward attack state, it means that the bullish trend of the midline has formed, and at this time, the midline should actively go long. Once a decision is made, it is generally not easily changed. So, once the price breaks through the decision line, it will not easily break through this decision support in the stage adjustment. However, once the price breaks through the decision line and the decision line turns downwards, it means that a large-scale downward trend has already begun, and at this time, the middle line should be decisively shorted.
6、 Trend line:
It refers to the 120 day moving average. Like decision lines, the main function of trend lines is to indicate the long-term reversal trend of prices, guiding or directing price bands and levels to operate within established trends. When the price breaks the trend line upwards or downwards in volume, it indicates that the overall price trend has reversed, and corresponding trading decisions should be made in the near future.
When the price breaks through the trend line, it generally does not move in the opposite direction in a short period of time. Even if the main force makes a bullish or bearish move, it will at least run above or below the trend line for about 10 trading days or several trading weeks before reversing.
