Average, referred to as MA, originally meant moving average. Because we make it linear, it is generally called moving average, or moving average for short. Is the sum of the closing prices in a certain period of time divided by the period. For example, the daily line MA5 refers to the closing price in five days divided by five.
The moving average was put forward by Joseph E.Granville, a famous American investment expert, in the middle of 20th century. The theory of moving average is one of the most widely used technical indicators, which helps traders to confirm the existing trend, judge the coming trend and find the trend that will be reversed if it is delayed excessively.
The size of the line entity, yin and yang, and the length of the shadow line all indicate the size and strength of the internal force of the stock. In practice, it will be beneficial for investors to thoroughly understand the K-line. Volume verifies the price trend, and its amount reflects investors' willingness to trade in the market. Investors are optimistic about the future of the market and willing to operate, and the trading volume will inevitably increase; On the contrary, the transaction is light.
The role of K-line and volume in actual operation.
The relationship between K-line and volume is mainly the relationship between Changyang line, Yin Chang line and volume.
Both Changyang Line and Yin Chang Line show the consistency of investors' views on stocks in the market, namely Changyang is bullish and Yin Chang is bearish. When investors in the market are optimistic about the future of stocks, they mainly buy or hold stocks. Under the daily limit system, the rise of stocks will close out a long positive line; On the contrary, it will receive a long yinxian. Then the practical significance of the collected Changyang or Changyin line in actual operation:
This is mainly the attitude of investors towards the post-market. However, in practice, after Changyang bought, the stock price fell instead of rising, and after Yin Chang appeared, it rose instead of falling, which requires trading volume to verify the effectiveness of Changyang or Yin Chang. In many years' practical operation, we found that when a stock closed out of Changyang, its trading volume was also enlarged, and the increase was more than 1 0,000%, which indicated that the stock rose very strongly, or it had absorbed the main funds in the early stage, and then it hit the market again and began to attack strongly. On the other hand, if the K-line of a stock receives a long negative line, it means that investors are not optimistic about the future of this stock and are selling it. If the volume is enlarged at this time, exceeding 100%, it means that the bearish power is strong and the market outlook begins to decline. Therefore, it is very important to understand the relationship between K-line and volume in practice.
Matters needing attention in actual operation:
1.k line position: The position of Changyang line or Yin Chang line is an important analysis aspect. The analysis methods of relative low position, middle position and high position are not exactly the same.
2. The degree of volume amplification: medium volume and sudden volume. The size of the stock determines the future development of the stock, and the specific situation should be analyzed in detail.
Matters needing attention
1.k line position: The position of Changyang line or Yin Chang line is an important analysis aspect. The analysis methods of relative low position, middle position and high position are not exactly the same.
2. The degree of volume amplification: medium volume and sudden volume. The size of the stock determines the future development of the stock, and the specific situation should be analyzed in detail.