Expma index is called EMA for short, that is, index smooth moving average index. It is a trend index. Its construction principle is to calculate the average of the stock index or the closing price of the stock price, and judge the change trend of the future trend of the stock price according to the results.
Expma is a very effective midline analysis indicator, because the calculation formula focuses on the weight of the market on the day of the price, which overcomes the lag of MACD indicator signals for the price trend, and also eliminates the signal advance of DMA indicators for the price trend to a certain extent.
Expma indicators are composed of yellow and white lines. Short term expma1 is white line, and long term expma2 is yellow line.
Buying skills of expma indicators:
1. When the white line crosses the yellow line, it is a reference buying signal;
2. In the rising trend, the price will move along the white line, and the low point of price correction is often near the yellow line. The white line and yellow line play an important role in supporting the stock price. When the stock price is close to the yellow line, they are important reference buying signals.
3. When the yellow line is crossed on the white line, the stock price returns to near the yellow line, and the positive line is closed to confirm support, which is the best reference buying point at this time.
4. When the expma index forms a golden fork, a large positive line appears at the same time, and the trading volume is enlarged, in order to establish the starting point of the rise, the reference value of buying is greater.
Selling skills of expma indicators:
1. When the white line goes through the yellow line, it is a reference sell signal.
2. In the downward trend, the stock price runs below the white line and the yellow line. At this time, the two lines have a suppressive effect on the stock price.
3. When the stock price falls below the white line and the white line starts to turn around, it indicates that the short-term position reduction signal appears. If the stock price falls below the yellow line again, it indicates that the medium-term trend starts to decline and the stock in hand is considered to be sold.
4. When the expma index forms a dead cross, and at the same time there is a large negative line, and the trading volume is enlarged, and it is established as the starting point of the decline, the reference value of selling is greater.
The market significance of expma index:
1. This indicator is generally a mid short term stock selection indicator, which is more consistent with investors mainly in the mid short term. Therefore, signal buyers have the opportunity to make profits.
2. If the white line and the yellow line keep rising, it means that the stock will continue to be bullish in the future. Every time the stock price falls back near the white line, as long as the yellow line is not broken down, this falling phenomenon is a good opportunity to intervene.
