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The MA indicator is a commonly used technical indicator that reflects stock price trends by calculating the average price over a certain period. The smoother the MA indicator, the better it reflects the long-term trend of the stock price.
The function of the MA indicator is to help investors identify the trends of stock prices, including upward trends, downward trends, and sideways trends. When the MA indicator of stock prices moves upward, it indicates that the stock price is in an upward trend; when the MA indicator moves downward, it indicates that the stock price is in a downward trend; when the MA indicator moves horizontally, it indicates that the stock price is in a sideways trend.
When using the MA indicator, different moving averages can be chosen based on different time periods, such as 1 day, 7 days, 10 days, 20 days, etc. Generally speaking, shorter-term MA indicators can reflect the short-term trends of the market, while longer-term MA indicators can reflect the long-term trends of the market.
When using the MA indicator, attention is usually paid to the crossover points of the MA indicator. For example, when the short-term moving average (fast line) crosses above the long-term moving average (slow line), it is called a 'golden cross', indicating that the market's short-term trend is upward; conversely, when the short-term moving average (fast line) crosses below the long-term moving average (slow line), it is called a 'dead cross', indicating that the market's short-term trend is downward. Additionally, the relative position of the MA indicator and futures prices can also be observed. For instance, when the futures price is above the MA indicator, it indicates that the market is in an upward trend, while the opposite indicates a downward trend.