These lines are called moving averages, which is what crude oil investors often call MA. It can help investors to confirm the existing trend, judge the trend that will appear, and find that excessive delay will reverse the trend. It is one of the technical indicators commonly used by investors. I. Overview of the moving average The moving average is a curve connecting the average price in a period of time, which reflects the fluctuation of historical market and is widely used to analyze the future development trend in the crude oil investment market. According to the length of the cycle, it can be divided into short-term moving average, medium-term moving average and long-term moving average. Among them, in the crude oil market, the four commonly used moving averages are 5 days, 10 days, 22 days and 66 days, which are represented by different colors on the disk. Second, the nature and stability of the moving average 1 Generally speaking, the longer the cycle, the more stable the moving average, that is, the moving average will not easily fluctuate up and down, and the moving average will obviously extend in one direction until the price obviously rises or falls. Usually, when the price reverses, the direction of the moving average will not change. For example, when the price of crude oil starts to fall, the EMA will still run upward, and when the price drops sharply, the EMA will turn its head, which is the biggest feature of the EMA. 2. Lag Because the EMA is a line connected by the average value of price calculation over a period of time, it is doomed that the EMA moves slowly and the trend of U-turn lags behind the general trend. Generally, when the EMA sends a U-turn signal, the depth of crude oil price U-turn is already great, which is a big shortcoming of the EMA. Third, the commonly used technologies of moving averages are 1, 5-day, 10-day, and 22-day moving averages from top to bottom and moving to the upper right, indicating that the market outlook will rise sharply. 2. Short positions are arranged from bottom to top on the 5-day, 10, and 22-day moving averages, and move to the lower right, indicating that the market outlook will fall sharply. 3. Gravy Law When the EMA is in an obviously upward running stage and the price is above the EMA, when the crude oil price falls back to the vicinity of the EMA without breaking through the EMA, the EMA has an obvious supporting role and the market outlook is bullish. When the moving average is in the obvious downward running stage, the price is below the moving average. When the price rebounded to the EMA without breaking through it, the EMA had strong resistance, and the market outlook was bearish. When the price obviously deviates from the moving average, the price must return to the moving average. For example, when both the moving average and the price are moving upwards, and the price is above the moving average and far away, it means that many parties are profitable, and profit selling may occur at any time, and the market outlook is bearish.