First of all, the 5-day moving average refers to the average of the effective transaction price of the disk or stock within 5 days, and then connect the average points in these times to form a 5-day moving average (5MA). Investors can refer to the combination of 5-day moving average (5MA) and other moving averages, or the combination of 5-day moving average (5MA) and market price, which is a commonly used short-term technical reference indicator.
1, combination of 5-day moving average and other moving averages
If the 5-day moving average of the disk or stock price is above the longer-term moving average of 10 and 20, it means that the moving average is in a long position. When the 5-day moving average of the disk or stock crosses the intersection of longer-term moving averages such as 10 and 20, it can be used as a reference signal for investors to buy in the short term. (as shown in the figure below)
On the other hand, if the 5-day line of the disk or stock price continues to run below the longer-term moving averages such as 10 and 20, it means that the moving averages are short. When the 5-day moving average of the disk or stock crosses the intersection of longer-term moving averages such as 10 and 20, it can be used as a reference signal for investors to sell in the short term. (as shown in the figure below)
2. 5-day moving average and market price combination
When the 5-day moving average of the disk or stock is lower than the stock price, it shows that the market price is in a short-term bullish trend. And the market price effectively breaks through the 5-day moving average, which is a short-term buying reference signal. (as shown in the figure below)
Conversely, when the 5-day moving average of the disk or stock is above the stock price, it means that the market price is in a short-term short-term trend. And the market price effectively fell below the 5-day moving average, which is a short-term selling point reference signal. (as shown in the figure below)
Generally speaking, the 5-day moving average tactics are mainly used for short-term trading strategies. What investors need to pay attention to is that there is no perfect technical form and technical indicators in the market, and there will be some misleading information, which needs to be combined with other indicators, market environment and individual stocks for reference.
(This information is for reference only and does not constitute investment advice. Carefully evaluate when investing. )