The moving average (MA) is essentially a tool to track trends. By averaging the closing prices in a certain period, it can identify and display the key opportunities when the old trend has ended or reversed and the new trend is emerging.

Ma's basic idea is to eliminate the influence of random fluctuation of stock price and seek the trend of stock price fluctuation. It has the following characteristics:

(1) Track the trend;

(2) Lag phenomenon;

(3) stability;

(4) Help rise and fall;

(5) Support line and pressure line.

There are many kinds of moving averages, which can be 3 days, 5 days, 120 days and so on. In terms of time, it can be roughly divided into short-term (weekly), medium-term (monthly) and long-term (annual) moving averages.

The basic application law of MA: Grignard's Law

1, the moving average turns flat from falling, and the stock price crosses the moving average from bottom to top, which is a buying signal; The average line goes flat from the rise, and the stock price crosses the average line from top to bottom, which is a selling signal.

2. The stock price keeps rising far from the average line, but actually falls, but rises again near the average line, which is a buying signal; The stock price keeps falling away from the average and suddenly rises, but falls again near the average, which is a selling signal.

3. The stock price fell below the average and plummeted continuously, and staying away from the average was a buying signal; The stock price continues to soar beyond the average line, far from the average line, which is a selling signal;

4. The short-term average line crosses the long-term average line, which is a golden cross and a buying signal; The short-term average crosses the long-term average, which is a dead fork and a selling signal.

Briefly summarize, you can systematically understand the relevant aspects in the reference book, and at the same time practice with a simulation disk, so that the theory can master the skills quickly and effectively. The simulation disk can be used to simulate stock trading, and personally feel good. Many functions in it are enough to analyze the market and individual stocks, which is helpful for use. I hope it will help you and wish you a happy investment!