The annual line generally refers to the 250-day moving average in the K-line chart, which is the result of adding up the moving averages of each trading day in 250 days. Usually, it is marked with a red line in the K-line chart, but different stock trading software will have some differences in color marking.

In addition to the annual 250-day moving average, the moving average indicators commonly used by investors include the 5-day and 10-day short-term moving averages, the 36-day and 60-day medium-term moving averages, and the 120-day moving average. days versus the 250-day long-term moving average.

Disadvantages of the moving average:

1. Due to the lag of the moving average, it is difficult for investors to rely on the signals given by the moving average for trading. Generally, investment Investors need to use the moving average indicator in conjunction with other technical indicators to make accurate judgments;

2. In consolidating market conditions, the moving average indicator will frequently produce buy or sell signals. , this situation is the situation where investors are most likely to make mistakes;

3. The moving average changes slowly, and it is difficult for investors to grasp the peaks and troughs of stock prices based on the moving average.

The meaning of each indicator in stock software:

(1) Smoothed average line of convergence and divergence indicator - MACD: The indicator displayed by default in stock software is generally the exponential smoothed average line of convergence and divergence, or macd. . The MACD indicator, also called the exponential smoothed moving average of convergence and divergence, was created by Gerald Apple. It is a technical analysis tool for judging stock buying and selling opportunities and tracking stock price trends. The MACD indicator is mainly based on the study and judgment of the relationship between the three values ????of EMA, DIF and DEA (or MACD, DEM), the study and judgment of the moving average connected by DIF and DEA, and the histogram drawn by DIF minus the DEM value ( BAR) is a major stock market technical analysis indicator used to analyze and judge the market and predict short- and medium-term stock price trends.

(2) Stochastic indicator - KDJ: KDJ indicator, also called stochastic indicator, was first proposed by Dr. George Lane. It is a quite novel and practical technical analysis indicator. It was first used in the analysis of the futures market, and later was widely used in the short- and medium-term trend analysis of the stock market. It is the most commonly used technical analysis tool in the futures and stock markets.