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        TA Challenge: How do you identify trends with moving averages?
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        Moomoo MA default value indicator for stock value prediction

        Moomoo MA default value indicator for stock value prediction
        We have different indicators embedded into the moomoo app stock view feed. For price analysis we are going with the moving average indicator.
        The figure above is scaled for a day view to get the complete MA trend lines within one graph for FUTU. Inc stock, since all the lines are not visible in small scale graphs we have to switch graph for a day scale. The orange color line shows the average of 28.24 vales while the Cyan color line shows the average of 91.78 vales. These values are also visible in the top lines below the graph scale. The short trend values are in orange color in extreme left while the long trend is shown cyan color in extreme right.
        From here we can assume our probabilities for short or long positions.
        The smallest moving average of line usually oscillates around a bigger moving average lines. For example orange line oscillates around light blue line, the light blue line oscillates around the purple line and so on. The accuracy of this oscillation gets higher around the higher value MA(Cyan). Therefore, this indicator gives a good indication for long term trades.
        Here we can see that the blue line gives a very strong signal for the stock value to go up followed by the green and red line. The red line gives a slight indicator for a positive trend. However, the cyan shows a negative trend cycle for the stock. From this we can assume that for around 3-4 months the stock is more like to move to positive cycle around the red and cyan lines and later it continues its negative trend. This assumption can be corrected further again with more values. The Moving Average is a statistical model like every other that improves more with more data points and the larger sample size. Thus, I recommend going with a larger MA trend lines instead of the smaller ones for greater accuracy.
        Sometimes the smaller MA lines can also be used for option trading, however it has a high volatility because the presence of general information rule. ie: if everyone knows the information everyone takes a similar buys/sells position on a stock that increases the volatility, since everyone cannot have profit simultaneously. This decreases with a larger scale because the volume in large scale increases. So, even for the options trading, I recommend taking positions based on higher MA trend lines, the higher the better.
        Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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