The moving average refers to the arithmetic moving average in a certain trading time, which was initiated by American investment expert glanville and evolved from the "three trends theory" of Dow's stock price analysis theory. The following is how to set the average value compiled by Bian Xiao, hoping to help everyone.
How should the value of the moving average be set?
Average, according to the different calculation methods, can generally be divided into the following four categories, namely, ordinary average, exponential average, smooth average and weighted average. General Settings: Daily lines generally set the following moving averages: 5 10, 30, 60, 120, 250-day moving averages.
It is enough to set these moving averages. Among them, the 5-day and 10 moving averages are called short-term moving averages, the 30-day and 60-day moving averages are called medium-term moving averages, and the 120 and 250-day moving averages are called medium-term moving averages.
Which three numbers are most suitable for the average setting? The 5-day, 10 and 30-day moving averages are the best. These three moving averages are best in a small area, dense or intertwined. Even if it passes, the effect may not be ideal.
What is the definition of moving average?
The moving average refers to the arithmetic moving average in a certain trading time, which was founded by American investment expert glanville and evolved from the "three trends theory" of Dow's stock price analysis theory. Digitize Dow's theory, and predict the short-term, medium-term and long-term change direction of future stock price from the change of numbers, so as to provide basis for investors' decision-making.
Type of moving average
Moving averages can be divided into short-term moving averages, medium-term moving averages and long-term moving averages according to the length of time.
Short-term moving averages are commonly used as 5-day moving average, 10 moving average, 20-day moving average and 30-day moving average. Medium-term moving averages are commonly used as 45-day moving averages, 60-day moving averages and 90-day moving averages; The commonly used long-term moving averages are 120 moving average and 250 moving average.
In the picture: white is the 5-day moving average, yellow is the 10 moving average, purple is the 20-day moving average, green is the 30-day moving average, and blue is the 60-day moving average.
Characteristics of moving average
The moving average can reflect the real price trend, which is usually an upward trend or a downward trend. With the arrangement of various moving averages, we can predict the long-term trend of stocks, and at the same time, we can flexibly use K-line technology to realize low buying and high selling, thus obtaining higher returns.
1, stationarity: because the moving average adopts the "average" price, it will not fluctuate like the K-line chart, but will rise and fall smoothly;
2. Trend characteristics: the moving average reflects the changing trend of the stock price, and raising eyebrows has trend characteristics;
3. Boosting characteristics: In a bull market, the moving average moves in one direction, and it will take a while to change direction. Therefore, in the upward trend of stock price, the moving average can be regarded as a multi-party defense line with boosting characteristics;
4. Help-down characteristics: Contrary to the help-up characteristics, in the downward trend of stock prices, the moving average can be regarded as the defense line of the empty side and has the help-down characteristics;
5. Stability characteristics: Generally, the longer the moving average is, the more stable it is, that is, the moving average will go up only after the upward trend is really clear. At the beginning of the stock price decline, the EMA will still go up, and only when the stock price drops sharply will the EMA go down.
What does the average mean?
The moving average is the weighted average of the daily closing price, thus obtaining a trend trajectory. 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.
The moving average index is actually the abbreviation of moving average index. Because this indicator is an important indicator reflecting the price trend, once it is formed, it will last for a period of time, and the high point or low point formed by the trend operation has the function of blocking or supporting respectively, so the point where the moving average indicator is located is often a very important support or resistance level, which provides us with a favorable opportunity to buy or sell, and the value of the moving average system lies in this.
Take the arithmetic average of the closing price of the first nine days of each day and the closing price of the ten days of that day, and then connect it with the arithmetic average of several days. The curve 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. The 20-day moving average is a moving average of 20 time units. ..。 .. and everything else means the same thing. The above is a common practice. Some people take the average daily price, while others take the average weight. And the practice is different. In the K-line diagram, the constants are MA5, MA 10, ... ..。
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.