The 20-day moving average refers to the weighted average price on the 20th, which is the short-term trend line of stocks. The moving average system has a certain supporting and suppressing effect on stocks. When the stock runs above the 20-day moving average, the 20-day moving average supports the stock, and when the stock runs below the 20-day moving average, the 20-day moving average suppresses the stock. The rise and fall of stocks is not determined by the moving average system, but by the relationship between supply and demand, the amount of funds, policies, news and other factors. The moving average system can be used as a stop-loss line for investors.

The 20-day moving average is the weighted average price of the closing price of 20 trading days, also known as the monthly moving average. Connecting these calculated points every day constitutes the moving average, which indicates what the average transaction price of the stock price has reached in the past month, and whether the market traders are in a profitable state or a quilt state this month. The 20-day moving average is the main line to investigate the evolution of stock price from short-term trend to medium-term trend. 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.

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.