Take the arithmetic average of the closing prices of the first nine days and the tenth day of the day, and then connect the curve with the arithmetic average of several days, which is the ten-day moving average. Similarly, there are ten-minute moving averages, ten-hour moving averages, and various moving averages made in different time units such as weeks, months and years. Usually, the average value of 10 time unit is collectively called 10 average value. A 20-fold moving average is a moving average of 20 time units. The above is a common practice. Some people take the average daily price, while others take the average weight. And the practice is different. MA5, MA 10, MA20 and MA30 are often marked on the K-line diagram.
I used to calculate and draw by myself. Now all technical analysis software can find the corresponding moving average in the K-line chart of a certain period of time. Because the moving average has a certain comparative effect on the stock price trend, it is very important for technical analysis. Generally, short-term trends are analyzed by daily lines MA5 and MA 10, medium-term trends are analyzed by MA30 and MA60, and medium-and long-term trends are analyzed by M 125 and M250. And do short-term operation with 5-30 minutes K-line, and analyze the long-term trend with the moving average trend of weekly, monthly and annual K-line.
Because the trend of stock price can be dynamically analyzed from the moving average, it is often used to set stop-loss points and take-profit points (high selling points), which is actually an activity scale determined through technical analysis. Only relative reference value.
I suggest you find some basic books to read. There is no mature theory in the stock market, and the actual operation depends on our own experience and lessons.
Average calculation
For example, the 30-day moving average is the closing price of the market for 30 days, divided by 30 to form the 30-day moving average, and then connected in turn to form the 30-day moving average, and so on.
From the morphological point of view: early intensive transaction area, early head (the inflection point from rising to falling), early bottom (the inflection point from falling to rising) and so on.
From the perspective of the EMA system, the 5th line, 10 line, 20th line, 30th line, 60th line, semi-annual line and annual line all have support, and the support is getting stronger and stronger in turn.
From the technical indicators, all kinds of technical indicators have their own support and pressure level, because there are too many indicators, you can see for yourself. Common ones are KDJ, MACD, Bohr, W%L, etc. The general characteristics of moving averages are divided into long positions and short positions. Long arrangement means that the market trend is a strong upward trend, and the moving average is arranged in long positions under 5- 10-20-30-60 K line. The trend of long-term arrangement of moving averages is strong upward, and the operation idea is long-term thinking. Take the support point of the average price line as the buying point to enter the market, and break the average price line to support the stop loss.
Short position arrangement means that the market trend is weak downward, the moving average is on the 5- 10-20-30-60K line, and the K line is pressed downward to form short position arrangement. Average bears are arranged in a weak downward trend. Take the resistance level of the average price line as a selling point to enter the market and break the stop loss of the average price line.
Moving average is a common tool for technical index analysis, which is adopted by most technical analysts. The moving average of 5- 10 changes rapidly, and the commonly used moving average is 5- 10-20-30. The futures price changes quickly, and the moving average above 60 lags behind.
Ordinary moving average
The 5- 10-20-30-60 moving average is dominant.
The general characteristics of EMA are divided into bulls and bears. Long position means that the market trend is strong and upward, and the support level of EMA is long position under 5- 10-20-30-60 K line. The trend of long-term arrangement of moving averages is strong upward, and the operation idea is long-term thinking. Take the support point of the average price line as the buying point to enter the market, and break the average price line to support the stop loss.
Short position arrangement means that the market trend is weak downward, the moving average is on the 5- 10-20-30-60K line, and the K line is pressed downward to form short position arrangement. Average bears are arranged in a weak downward trend. Take the resistance level of the average price line as a selling point to enter the market and break the stop loss of the average price line.
Moving average is a common tool for technical index analysis, which is adopted by most technical analysts. The moving average of 5- 10 changes rapidly, and the commonly used moving average is 5- 10-20-30. The futures price changes quickly, and the moving average above 60 lags behind.
Under what circumstances will the average price soar unilaterally? The condition is that the moving averages of1-5-10-15-30-60-week-month are all arranged in multiple positions. In addition to other factors that led to the skyrocketing. On the contrary, the unilateral plunge is the same.
The trend of the average time of weekly and monthly lines will be relatively stable, and the average will not change much when it is short. If the weekly and monthly lines are long or short, it will take a long time for the market to rise or fall.
The correlation of moving averages, such as the long arrangement of moving averages, the short arrangement of weekly moving averages, and the pressure of weekly moving averages, will lead to price fluctuations and may not rise, because the weekly moving averages will not change soon, leading to a major change in the trend. If the weekly line is also long, then the price increase will be more stable, and the trend will be more stable and will not change easily. If the 5-point moving average is long and 10 is short, then the failure probability of a 5-point rise will be higher. If the 60-point moving average is long, the short-term trading will maintain the support of 60 points, and the probability of successful short-term trading will be higher than 5 points. If the moving average is chaotic and there is moving average support under the moving average pressure, this is a shock potential energy, and the trend direction is unknown.
Buying and selling points, using the moving average to set the buying and selling points, the moving average system is the buying point and starting point of the bonding cross direction, and the range of price start is determined according to the links of different time charts. For example, the condition of 5 o'clock is met, 10 is not met, and the upward pressure of 5 o'clock is in the moving average of 10. The moving average system is a selling point under the adhesive reticle. It is the starting point of the decline.
The application of EMA system is to see whether the current trend is strong or weak, the signal of trading point, and the signal to start now.
The moving average system is a common technical tool for most analysts. From a technical point of view, the psychological price factors that affect technical analysts. Thinking about the decision-making factors of trading is a good reference tool for technical analysts, which lags behind the price changes.
Eight Rules of glanville Moving Average
1, the moving average gradually leveled off from the decline and rose slightly, while the stock price broke down from the moving average, which was a buying signal.
2. the stock price runs above the moving average, and it is a buying opportunity if it does not fall below the moving average and then rises again.
3. The stock price runs above the EMA and falls below the EMA when it returns, but the short-term EMA continues to show an upward trend. This is the time to buy.
4. The stock price runs below the moving average, suddenly plummets, is too far away from the moving average, and is very likely to be close to the moving average (extremes meet, falling and rebounding). This is the time to buy.
5. The stock price runs above the moving average, rising sharply for several days, getting farther and farther away from the moving average, indicating that the people who bought the stock recently have made a profit, and there will be profit selling at any time, so they should sell the stock temporarily.
6. The moving average has gradually leveled off from the rise. When the stock price falls below the moving average from the top of the moving average, it means that the selling pressure is getting heavier and heavier, and the stocks held should be sold.
7. The stock price runs below the moving average, but it doesn't break through the moving average when it rebounds. The falling speed of the moving average slows down, then it tends to be horizontal, and then it shows a downward trend. This is the time to sell.
8. After the stock price rebounds, it hovers above the moving average, but the moving average continues to fall, so it is advisable to sell the stocks it holds.
Articles 3 and 8 of the above eight rules are not easy to master, and their specific application is risky. Before mastering the rules of using EMA, you can consider giving up using EMA.
Articles 4 and 5 do not specify how far the stock price is from the moving average, which can be solved by referring to the deviation rate.
Second, the moving average is a curve drawn by calculating the average with the closing price of N consecutive days as the buying data. It can be used to predict the future trend of the stock market. There are many values of n, which can be set according to your own needs. Generally, the smaller the value of n, the more sensitive it is, and the larger the value of n, the more lagging it is. Generally, there are 5 days, 10 days, 20 days, 30 days and 60 days. Its purpose is to obtain the average cost of a certain period of time, and analyze the advantages and disadvantages of a certain period of time with the moving curve of the average cost and the linear change of the daily closing price, so as to judge the possible changes of the stock price. Generally speaking, the current price is above the average price, indicating that the market demand is large and the market is promising; On the contrary, it shows that the buying pressure is high and the market is bearish.
Let's take the 5-day moving average as an example to explain the origin of the moving average:
Calculate the arithmetic average of the five closing prices from 1 day to the 5th day, and get the 5th day average price of 1 day; Calculate the arithmetic average of the five closing prices from the second day to the sixth day to get the second five-day average price. By analogy, a series of 5-day average prices can be obtained, and these 5-day average prices are connected by curves to become the 5-day moving average.
Third, the moving average I take 20 days as an example, just to illustrate the guiding significance of the moving average to the stock price.
It goes without saying that there is a difference between short-term and long-term moving averages.
Then, take the 20-day moving average for example. If the stock price rises above the 20-day moving average, it must run above the 20-day moving average for at least 20 days. If it falls below, it will run below the short position for at least 20 days. Of course, this is in case of an upward or downward trend.
You can think of 20 days as a mid-line trend, then the 3, 5, 8, 10 moving average is the application of short-term moving average. Short-term moving averages like these are of little significance to the future operation of stock prices. You can't use any moving average as a trading operating point alone, which only shows that the short-term trend is improving and the odds are not high.
The real function of mid-term moving averages such as 20, 30, 60 and moving average is as the trend line of a wave of market, which is a tool for band operation.
120 moving average: it is a very important indicator to judge the bull market. Once the stock price is above the 120 moving average, it will run at the 120 moving average from May to July, which means that the 120 moving average is flat and upward; Once the stock price falls below this moving average, it means that it has entered a short market, and the running time is about May-July, indicating that the 120 moving average is flat and downward. Even if there is a slight rebound at this time, when the deviation rate of the proposal 120 is less than -25, it can also grab the rebound, generally with an increase of 20-30%.
Similarly, the 250, 360, 600 and 840-day moving averages are the same as the 120 moving averages.
In addition, I also want to explain here that the operation of the moving average has a time amplification effect:
Here I only talk about the amplification effect of the long-term moving average,120,250,360,600,840 moving average.
Second, the time amplification effect:
Under normal circumstances, the stock price will run below the 120 moving average for about 6 months, and it will run above the 120 moving average for about 6 months. However, if the stock price runs below the 120 moving average for more than 6 months and the stock price is far away from the 120 antenna, the running time will exceed the 120 antenna. On the contrary, it has been running on 120 antenna for more than 6 months, and vice versa. In general, the amplification of time will not exceed 2 times, that is, 18 months. The same is true for 360 and 600 antennas. In the actual operation of the stock price, the time may be short or long, so the time corresponding to120,360,600 antenna should be integrated to determine the inversion time of the stock price operation.
Three: the general law of the moving average system
The average system I gave is short-term average of 30.60, medium-term average of 120 and long-term average of 360.600.840. They generally have the following rules: (30.60. 120.360.600.840)
1: When the stock starts a bull market, the stock price continues to fluctuate upwards and is far away from the golden crossing point of the moving averages, then any two moving averages in the moving average system will have a golden crossing point, and the stock price will definitely fall back.
2. The stock price keeps fluctuating downward, away from the dead fork point of the moving average. If any two moving averages in the moving average system are dead, the stock price will rebound.
3. If the stock price consolidates or rebounds (falls) for more than one week before the EMA crosses, 1 and 2 may become invalid.
4. When the EMA system constitutes a long arrangement, the stock price will keep fluctuating and rising. When the stock price returns, the first real dead fork is hard to appear, that is, after the moving average system changes from short position to long position, when the 30-year moving average is close to the 60-year moving average (whether there is a dead fork or not), it indicates that the adjustment of the stock price tends to end and a new round of rising market will begin.
5. If the stock price rises steadily, the end of the second mid-term adjustment is marked by the 60-year moving average approaching the 120 moving average, or the 30-year moving average approaching the 120 moving average (whether dead or not), and a new wave of market will begin.
6. If the bull market experienced the situation that the 30-moving average fell below the 360-moving average during the adjustment process (the previous bull market adjustment may end at this time), then when the moving average system appears long here, it marks the last wave of the big bull market, and the peak of the stock price marks the end of the big bull market.
7. This moving average also follows the rules of the general moving average. When the stock price is near this moving average system, the stock price will rise when there is a golden cross in the moving average A, especially the golden cross between the medium and long-term moving averages will produce a big market. When the EMA dies, the stock price falls.
8. Adjusting the market can be a decline or a platform fluctuation.
I won't list specific examples. You can set your average value in the software: 30,60,120,360,600. I believe you can find a pattern. This will help you not lose yourself in short-term operation.