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.
Operation skills of 20-day moving average
1, scope of application:
After bonding, the moving average diverges downward and is arranged in a short position.
In the bull market, the moving average is long, and the stock price is always on the 20-day moving average, which is not suitable for this selling method.
2. Buy:
Buy when the stock price rises above the 20-day moving average.
Two stocks with half funds each are bought twice in one day (when crossing the 20-day moving average and after 2: 30 that day).
Only stocks found after the close of the previous day are selected.
After buying it, list several possible situations and countermeasures in writing.
Stop the loss if you buy it wrong, and never make up the position to level the cost. I haven't considered whether I bought it correctly, so I won't add it for the time being.
3. Sales plan:
Stop loss principle: -3% stop loss, 5% sell half, and the other half maneuver.
Write down the reasons for holding or selling every day according to the pre-established countermeasures.
After selling, continue to follow the trend and sum up the right and wrong of buying and selling.
The application of the 20-day moving average in actual combat should pay attention to the following conditions:
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 2.20-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.
The trend judgment of the 3.20-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.