The moving average reflects the average holding cost of market investors and plays an irreplaceable role in judging the stock price trend. Investors all know that crossing the 30-day moving average on the 5th and 10 is a golden fork signal, and crossing the 30-day moving average is a dead fork signal. At the same time, the important moving average has important support or resistance to the stock price. In fact, the use of moving averages is very beneficial to capture stocks in the early stage of entrepreneurship and find the best buying point for stocks. If the original 5, 10 and 30-day moving averages are intertwined, it means that the stock price is in the consolidation stage. Once it diverges upward (that is, like a spider weaving a web), even if there is no golden cross signal at this time, it shows that the stock price is gradually rising.
Some long-term sideways stocks, with moving averages of "you have me" and "I have you", are intertwined. At this time, it is advisable to wait and see. Once the EMA starts to "split" upwards, it can intervene in time. For example, Guangdong Electric Power (0539) began to decline in September last year, and its moving average gradually diverged downward. This year, 65438+ 10 began to fluctuate at a low level, and the moving averages of May, 10 and 30 were intertwined, with no obvious direction. On March 2 1, the stock price began to bottom out, and the moving averages gradually parted ways and went their separate ways. Since then, the stock has embarked on an upward channel and has doubled. Generally speaking, the longer the low position is consolidated, the broader the space for upward expansion once it is separated. Songliao Automobile (6007 15) has been repeatedly arranged near 8 yuan for several months since the end of last year, and several moving averages have been glued together. March 2 1 moving average gradually "separated" and the stock price entered a medium-term strength.
Once there is a certain increase in the previous period, the average of some stocks with high shrinkage will split upward again, indicating that a new round of offensive is about to begin. For example, Jiangsu Thorpe (600746) started a long-term bull market from 1999, and in April this year, it began to organize on the platform near 17 yuan, and the three moving averages were bonded together. On June 14, a bald Changyang line broke through the consolidation area, and the moving average diverged rapidly.
The general trend of the world will be divided for a long time, and so will the moving average. If the stock price rises rapidly and the moving averages are too far apart, the risk of falling back will increase and the moving averages will tend to approach again. For example, at present, the average difference of Shantui (0680) is too far, which is no longer suitable for chasing high. Some stocks fell back quickly after a short period of strength, and the moving average just deviated and re-bonded. This is a false breakthrough phenomenon, which can be screened with the help of indicators such as volume.