The theory of moving average (MA) is the most common technical analysis method in the stock market, which plays a magical guiding role in the operation of the stock market.
1, "Golden Cross"
When the 10 moving average crosses the 30-day moving average from the bottom, the 10 moving average is above and the 30-day moving average is below, and the intersection point is the golden cross, which is the performance of bulls. After the emergence of the golden cross, there is still some room for growth in the market today, which is the best time to enter the market.
2. The Cross of Death
When the 30-day moving average crosses the 10 moving average, the 30-day moving average crosses the 10 moving average from bottom to top. When the 30-day moving average crosses the 10 moving average, this crossing is called "death crossing", which indicates that the short market will come to supervise and the stock market will fall. At this time, it is the best time to make a quotation.
Moving average and stock trading timing: the moving average reflects the change of stock price, and the moving average theory can be used to grasp the timing of stock trading.
The 1 and 10 moving averages cross the K-line chart from above and are located below the K-line chart. More idling, it is time to buy.
2. 10 moving average, 30-day moving average and 72-day moving average all cross the K-line chart from top to bottom, indicating that the bullish momentum of the stock is extremely strong, and the rebound is a foregone conclusion, which is a buying opportunity.
3. The10 moving average, the 30-day moving average and the 72-day moving average are parallel at the bottom of the K-line chart, indicating that it is a bull market with a large increase in the market outlook, which is a buying opportunity.
4. The10 moving average crosses the K-line chart from bottom to top. It means that the short-term is changed from a long position to a short position, which is an opportunity to sell.
5. 10 moving average, 30-day moving average and 72-day moving average cross the K-line chart from bottom to top, and the stock will fall deeply, so it should be sold in time.
After the 10 moving average, the moving averages on the 6th, 72nd and 30th day cross the K-line chart from bottom to top and move to the lower right, with a deep decline. Therefore, the stock should be sold in time.
7. 10, 30, and 72-day moving averages are above the K-line chart and the three lines are parallel, indicating that the short market has been established and all stocks must be sold.
8. When the upward trend of the 72-day moving average turns flat or downward, it is the time to sell.
If we use the moving average theory well, we can't judge the real trend of the market and get considerable benefits, but the moving average theory is not the only technical analysis method. It has some limitations: first, the moving average is a graphic and slow reflection of the stock price after it is finalized. In addition, it can't reflect the change of stock price and the size of trading volume on that day. Comprehensive application of other technical analysis methods can achieve better results.
Extended data:
The common lines of EMA are 5 days, 10 days, 30 days, 60 days, 120 days and 240 days. Among them, the short-term moving averages on the 5th and 10 are the reference indicators for short-term operation, which are called the moving average index; 30 days and 60 days are medium-term moving average indicators, called quarterly moving average indicators; 120 and 240 days are long-term moving average indicators, which are called annual moving average indicators.
The most commonly used method of moving average is to compare the relationship between the moving average of securities prices and the prices of securities themselves. When the stock price rises above the moving average, the buying signal is generated. When the price of a security is lower than its moving average, a sell signal will be generated.
Baidu Encyclopedia: Moving Average