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What is the function of the Guppy reciprocal line? Judgment of the best buying point of Guppy moving average

2022-01-25

2019

The Guppy Average Indicator was invented by the international investment guru Mr. Daryl Guppy. It consists of two sets of exponential moving averages, which can reflect the behavior of short-term traders and long-term investors in the stock market. This article will introduce the function of the Guppy reciprocal line and the best buying point of the Guppy moving average.

The role of the Gubi reciprocal line

The Guppy reciprocal line can judge the authenticity of a new uptrend and can ensure that investors are one step ahead. Compared with the Gubi countdown line, other trend turning signals are slower, which will delay the timing.

When the downtrend turns into an uptrend, investors are prone to make mistakes in their investment direction. Sometimes, the stock index closes above the downtrend line, which is also a false reversal signal. Some indicators of trend turning, such as the Guppy Reciprocal Line, can be used to avoid mistakes.

When the index closes above the downtrend line, it is a signal to enter. If the index closes above the guppy reciprocal line, investors can choose to buy stocks.

There are three main uses of the Gubi reciprocal line, which are:

1. As a confirmation signal that the downtrend has changed to a new uptrend.

2. The stop loss signal after the transaction occurs.

3. As a confirmation signal that the business trend has turned into a new downtrend, and get the best time to exit.

Guppy's best buying point

Guppy moving average is used to judge the trend. When making stocks, we must first confirm the trend. We should do an upward trend, not a downward trend, but an upward trend. There is only one chance to buy a stock and buy the top, but if it falls If investors want to buy in a trend, the chance of being wrong is much greater.

To judge the trend, at least short-term trend plus long-term trend, and orderly divergence from bonding to bulls can be involved. You can use the weekly K-line to see, and the best buying point is when the short-term wears the long-term, the long-term tends to bond, the short-term and long-term bond resonates, or the short-term break through the long-term and then pull back the long-term moving average to confirm, and these key breakthrough positions It is often broken by the daily limit.

According to the closeness and divergence of these two indicators, investors can get more information. When the short-term group moving average and the long-term group moving average are close to each other, it means that short-term traders and long-term investors have reached a consensus on the value of the stock; Conversely, when the two moving averages diverge from each other, it means that they have divergent views on the value of the stock. Therefore, once the long-term and short-term price changes are in the same direction, it is a signal when a trading opportunity comes.

Regarding the question of the reciprocal line of Guppy, this article focuses on the function of the reciprocal line of Guppy and the best buying point of the Guppy moving average. It can be seen that the Guppy reciprocal line plays an extremely important role. If investors can make good use of the Guppy reciprocal line for trading, they will definitely be able to obtain more income.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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What is the function of the Guppy reciprocal line? Judgment of the best buying point of Guppy moving average

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