The commonly used moving averages mainly include 5 moving averages, 10 moving averages, 20 moving averages, 30 moving averages, 60 moving averages, 120 moving averages and so on. For the use of moving averages, the classification of moving averages is not a strict definition. Different people have different moving averages, as long as they find the right one.
1, 5-day moving average-attack line
The so-called attack line is what we call the daily 5-day moving average. It should be emphasized here that these specific terms generally refer to the daily line system, but the attack line can also be used for time-sharing, weekly line, monthly line and even annual line. If you are a mid-line shareholder, the five-week line is your attack line, and so on. The attack line has three functions. The head-turning of the attack line indicates that it is helpful to rise, and the flattening of the attack line indicates that the stock is doing platform consolidation. Bowing your head means it helps you fall.
2. 10 daily moving average
10 moving average is an indicator reflecting the unilateral continuous trend. In the case of bipolar market, it will move continuously along the 10 moving average for a period of time, usually for two weeks, until the stock price falls below the 10 moving average. Many stocks, especially Zhuang stocks that have been controlled, or theme stocks that have confidence in the main force, often rise along the 10 moving average during the main rising period, and the classic ending method is the explosion of the Dayang line.
3.20-day moving average
The 20-day moving average is the average closing price of a stock in the first 20 days of the market, and its significance lies in that it reflects the average cost of the stock 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 frequency of change of the 20-day moving average is much greater than that of the 10 moving average.
4.30-day moving average
The stock price surge and rise started when the stock price broke through the 30-day moving average, and dark horse shares tended to fatten up under the care of the 30-day moving average. Stocks below the 30-day moving average are like sparrows, and it is impossible to fly away. Stocks above the 30-day moving average are like eagles.
When the stock price breaks through the 30-day moving average, it must cooperate with the volume amplification. Sometimes the stock price breaks through the 30-day moving average and is confirmed by callback, but it should no longer close below the 30-day moving average, and the trading volume will definitely shrink sharply compared with the breakthrough. This is the best time to buy.