Summary
1. Use parameters
ma7-25-99-144-169
2. Usage
Determine the dominant moving average (MA7, 25 or other) based on the column position, time level, and trading volume
3. Use scenario judgment
① One-sided market - open a position with the trend or wait for a reversal; ② Shock market - preset the box direction at will
4. Purpose
Look for turning points, or price and time ranges where the market turns around (of course, the two are related and don’t need to be separated too much)
Nonsense part:
First of all, my overall understanding of trading is that the market is a dynamic and decomposable system, but my current ability does not allow me to make it extremely readable and understandable; and the execution of transactions is a self-centered practice. Many times, the brain understands it, but the hands do not. This is caused by both emotional factors and personality influences, so self-planning and execution are still required.
In general, it is a process of "observation, practice, optimization, iteration". Understanding the market is a pure skill and experience, while practice requires a test of mentality, operation and risk response plan. Of course, everyone may have different opinions, so I will not make any meaningless arguments here. I will only describe what I have seen.
Secondly, my work often involves dealing with data, so I have more data sensitivity and data analysis experience, which is conducive to further abstraction, summary and generalization of problems. Mathematics and data analysis are very useful tools and methods, and the various general and personalized indicators generated by them can save a lot of time in all aspects of trading.
Therefore, decomposition and combination, abstraction and transformation, this is my summary of my current personal methodology.
Main part:
The MA indicator is one of the main indicators I use. Its calculation method determines its characteristics: ① The correlation of data within the calculation interval; ② The correlation between the time level and the price fluctuation range; ③ The general consistency of MA curve changes at different time levels; ④ The interpretability between different time levels
The problems it causes include: there are some special cases, such as trb, not, high and insidious rare, that is, there is distortion of indicators under violent fluctuations and one-sided market conditions. Therefore, it is necessary to introduce volume price analysis and liquidity analysis as a supplement or the main basis for analysis.
1. Getting Started:
The MA system is mainly based on two concepts:
1. The support and resistance between the column and the five groups of lines of ma7-25-99-144-169 (but it does not necessarily follow the support and resistance completely, which is related to volume and price, and other game results, but there are more or less outlines of support and resistance, so there are traces to follow, which can become the starting point or the cornerstone of a set of solutions)
2. Prediction
Move Average, that is, ma(n)=∑t/n, as the name suggests, uses a sliding window of size n to extract a string of related data (time series) before and after as input and outputs its average value.
Therefore, the current price can be used as the next input t+1, and the value on the left side of the window (i.e. the earliest input) can be eliminated to predict the next ma(n)=[t-5..t,t+1]/n to find the turning point (i.e. the place with the highest cost-effectiveness in opening an order).
Generally speaking, forecasting starts with choosing a suitable product. I personally prefer the Tortoise and the Hare 985 approach: look for products with high intraday popularity and large gains, and wait for an opportunity to open a short position.
Because the market changes from slow to fast and then to slow again. The corresponding changes in the market are faster and higher waves, until the column tries to reach the limit far away from MA7, then falls back and draws a standard or less standard M (or it may not draw and go down directly)
Back to the topic of "prediction", the so-called M top or W bottom means that when the column falls back, excluding the T-6, T-5, T-4 and other scale prices, the calculated future predicted values still support MA7 to rise and provide support for the column.
Finally, from experience, the channel formed by ma144-169 can be regarded as strong support or strong resistance.
This is the most basic and simplest use of the moving average system.
*Due to characteristic ③, in terms of observation and accumulated experience, there is no essential difference between the 1-minute MA system and the hourly and daily MA systems, only the amplitude difference exists.
2. I haven’t decided what to write yet, so I’ll be lazy for now and think about it later.