In the field of financial investment, moving averages are the most basic and widely used technical analysis tools. Due to their ease of operation and strong practicality, they are favored by investors. By observing the direction of the moving averages, investors can make preliminary judgments about the strength of market trends: when the moving average shows an upward trend, it often indicates that the market is entering an upward channel, suggesting that the bulls are in control; whereas when the moving average tilts downward, it reflects an enhancement of bearish market forces, and the market is likely to continue its downward trend.

However, it is important to be cautious, as the turning points of moving averages are usually slow, showing a gradual change process. If investors rely solely on this indicator for trading decisions, they may miss the best opportunities due to delayed reactions, much like "boiling a frog in warm water", where it is difficult to detect risks during the early stages of a trend reversal. In reality, all technical analysis tools have limitations, and for investors, achieving stable profits is the ultimate goal; one must not blindly trust a single indicator.

In addition, like other technical indicators, moving averages possess inherent lagging characteristics. They cannot predict market trends in advance; the so-called "golden cross" and "death cross" signals are merely results of market price changes, not the causes driving price fluctuations. The underlying logic of financial market operations is that "price follows volume first", meaning that changes in trading volume are the core factors driving price fluctuations. Only when trading volume changes first can it lead to changes in price trends, which in turn prompts corresponding adjustments in technical indicator patterns.