The 20-day moving average of stocks refers to the average closing price of stocks in the market for 20 days, which is significant in that it reflects the average cost of stocks for 20 days. The 20-day moving average is the one with the largest parameter in the short-term moving average system. Compared with the 10 moving average, the time interval of the 20-day moving average is longer than the 10 moving average by 10 trading days, so the changing frequency of the 20-day moving average is much greater than that of the 10 moving average.

What is the moving average?

Moving average, originally meant moving average, is generally called moving average, because we make it linear. 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 common lines of EMA are 5 days, 10 days, 30 days, 60 days, 120 days and 240 days. Among them, the short-term moving averages of 5 days and 10 days. It is a reference index of short-term operation, called moving average index; 30 days and 60 days are medium-term moving average indicators, called quarterly moving average indicators; 120 and 240 days are long-term moving average indicators, which are called annual moving average indicators.

How should it be applied?

1, the 20-day moving average is close to the medium-term moving average, although it belongs to the short-term moving average, because the selected cycle parameters are relatively large. Therefore, in actual combat, when using the 20-day moving average to judge the market trend, we should consider the short-term trend, not just the short-term changes, otherwise there will be operational errors.

The trend judgment of the 2.20-day moving average still means that the short-term trend is upward, and the downward trend means that the trend is downward. Therefore, when using the 20-day moving average to analyze the trend, it can also be used to judge the position of market support or pressure, but at the same time, we must pay attention to the effectiveness of the 20-day moving average as support or pressure, otherwise it will lead to false stop loss.

The 3.20-day moving average will be relatively stable during the operation of the box in the market, that is, if the market fluctuates little, the 20-day moving average may be in a state of almost parallel operation.