How Industrial Investors Use EXPMA Indicators to Identify Trading Points

In the market, there are often main forces conducting reverse operations, which often lead to the repeated phenomenon of "top" and "bottom" in the stock price, so traditional indicators sometimes fail. ForSociete Generale InvestmentFor those who are concerned, it is particularly important to understand this context.

Due to the above phenomenon, many investors choose to use moving averages as the main basis for buying and selling stocks: when the monthly indicators (5-day moving averages, 10-day moving averages and 20-day moving averages) form a long arrangement, they usually buy; conversely, when the monthly indicators form a short arrangement, they tend to sell. However, the main players often use anti-technical tactics to deliberately break the stock price in succession and break through the above-mentioned moving averages, causing many investors to leave the market prematurely.

In order to overcome this shortcoming of moving averages, the EXPMA indicator is introduced here. The main advantages of this indicator are: learning from each other's strengths and weaknesses of moving averages, and at the same time having the functions of "golden fork" and "dead fork" of KDJ and MACD indicators. Therefore, for Industrial investors, this indicator has a high success rate and accuracy, and can provide better points for bottom fishing and top escape of individual stocks. It is a good helper for short and medium-term decision-making.

Graphical features: 1. The EXPMA indicator consists of EXPMA1 (white line) and EXPMA2 (yellow line). When the white line crosses the yellow line from bottom to top, the stock price usually continues to rise. The day these two lines form a golden cross is a good buying opportunity.

2. When the stock price moves away from the white line, the stock price will soon fall back, and then move up along the white line, which shows that the white line is a major support point. Industrial investors can focus on the effectiveness of this support.

3. Similarly, when the white line breaks through the yellow line from top to bottom, the stock price has often turned around and will decline in the future. At this time, the day the two lines cross is the opportunity to sell.

Market significance: 1. This indicator is generally a short-term stock selection indicator, which is more in line with short-term investors. According to this signal, buyers have profit opportunities, but it is more meaningful for mid-term investors, mainly because of its high stability and low volatility.

2. If the white line and the yellow line always maintain a distance upward, it means that the stock continues to look good. Every time the stock price falls back to near the white line, as long as it does not break through the yellow line, this decline is a good buying opportunity.

3. For selling timing, it is recommended not to use the EXPMA indicator to form a dead fork only as a basis, because the indicator has a certain lag. It can be judged in combination with the super short-term indicator that once a stock forms a dead fork, it is a midline exit signal.