In this market that relies heavily on indicators, I've seen too many people treat MACD and KDJ as bibles while leaving the most fundamental moving averages aside.
The problem often lies here: the way you look at moving averages might have been wrong from the start.
Remember the meaning behind these three lines:
$ZEC 1. The 5-day line is the lifeline for short-term trading.
If the price stabilizes above it, the short-term momentum is there; once it breaks below, it's the market reminding you: it's time to reassess the direction. This is the breathing rhythm of a sprinter; once the rhythm is disturbed, the pace falls apart.
$LRC 2. The 20-day line measures the mid-term sentiment.
If the line is moving up, it indicates that funds are still circulating in the market; if the line is flat or moving down, it is often a signal that funds are quietly retreating. Many people clearly see that the trend has changed but still hold on because they ignore this sentiment thermometer.
$SAPIEN 3. The 250-day line represents the long-term baseline.
If the price is below the yearly line, even if it seems like it has 'dropped a lot', it often means that the weakness has not yet reversed. That's not an opportunity; it's the trend telling you: don't rush, it hasn't really strengthened yet.
A few practical insights:
When a weekly line forms a golden cross, and the moving averages are in a bullish arrangement, the stability of the trend is often higher.
If a monthly line shows a death cross while the trading volume continues to shrink, going in to 'catch the bottom' usually just means you're catching a falling knife.
Those who can truly continue on have long stopped chasing complex indicators. They do subtraction: using simple lines to see the real path; using a regular ruler to control impulsive hands. The market is never complicated; what is complicated is the human heart. @luck萧
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