# MA

## Indicator Features

• Steady: It will not fluctuate like the daily line, usually a slow rise and fall.

• Stability: MA usually extends upward after a significant rise; the stock price begins to decline after a significant decline. However, the stronger the stability, the slower the response.

• Trend: It can reflect the stock price trend and has the nature of a trend.

• Helping up and down: When the stock price breaks through the MA from bottom to top, the MA becomes a short-term support line. When the stock price falls back to the vicinity of the MA, it is an opportunity to buy. This is the role of MA boosting. On the contrary, if it breaks down, the MA will help the decline.

## What is MA

The MA indicator is the abbreviation of English (Moving average), called the moving average indicator, which was proposed by the famous American investment expert Joseph E. Granville (Granville, also translated as Granville) in the middle of the 20th century. The moving average uses the principle of statistical moving average to add and average the stock prices within a certain period of time to obtain an average value, and then connect it to the obtained average line, which is the moving average.

## Algorithm

N day MA=(C1+C2+C3+C4+C5+....+Cn)/N

C is the closing price, N is the number of moving average periods, and the N-day MA is the arithmetic mean of the N-day closing price

Example: The calculation method of 5-day MA is:

MA5=(closing price four days ago + closing price three days ago + closing price the day before yesterday + closing price yesterday + closing price today)/5

## Usage of MA

### Golden fork

Generally speaking, when the moving average 20MA breaks through the 60MA upwards, it is called a golden cross, indicating that it may rise in the short term, with a swing increase, and it is suitable for long orders to enter or empty orders to exit.

### Dead fork

When the moving average 20MA falls below the 60MA, it is regarded as a death cross, indicating that it may fall in the short term, and there will be a swing decline, which is suitable for entering the market with empty orders or exiting with long orders.

#### MA trading opportunity

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