20-day moving average method for selecting daily limit stocks;
First, the stock price broke through the 20-day moving average:
When the stock price has experienced a round of decline, it will definitely rebound. When the stock adjustment breaks through the 20-day moving average and the volume is heavy, this is a technical buying point. What needs attention here is the coordination of volume, otherwise it doesn't make much sense. As shown in the following figure, the stock price quickly broke through the 20-day line and stood firm, which was also matched by the enlargement of trading volume. When the stock price effectively breaks through the 20-day line, the general increase will not be too small. At this time, investors can buy boldly.
Second, the stock price stepped back on the 20-day moving average in the long-term upward trend but did not fall below the 20-day moving average:
When the stock price stepped back near the 20-day line in the rising channel, it did not fall below and the transaction volume was not large. It is the best time to buy stocks after the callback to get the support of the 20-day moving average. As shown by the following force, generally speaking, stocks in the early rising channel have more active funds and higher attention. When the callback is made to the 20-day moving average, the probability of rebound is very high and the success rate is relatively high.
Third, the stock price returns to the 20-day moving average:
In the process of stock price rising, the increase is not very big. The stock price fell below the moving 20-day moving average, but it quickly pulled back and stood on the 20-day moving average again. I usually call him a vacation in this situation. Generally, callbacks are shrinking, and the increase is a large volume. Investors should buy when the stock price returns to the 20-day moving average, and the best operation time is 15 minutes before closing. As shown below, the stock price suddenly pulled back during the rising process, falling below the support of the 20-day moving average, but then pulled back. It also announced the end of the short-term callback and the beginning of a new round of gains. This is also the best time for investors to add positions and do band unwinding.
These can be understood slowly. There is no 100% successful strategy in the stock market, only reasonable analysis. Every method and skill has its application environment and the possibility of failure. Novices should not use Niugubao mobile phone to fry cattle in the cattle list when they are not sure, which is much safer. I hope I can help you, and I wish you a happy investment!