The shape of the moving average is determined by the characteristics of the moving average. The moving average is an average calculation of the price. Therefore, the reason for the formation of the so-called moving average bonding pattern is actually that the stock price has undergone long-term fluctuations, making the long-term , the short-term moving average value is close to being formed. From the perspective of the moving average, it is the adhesion of the moving average. From the perspective of the form, it is the box arrangement. From the perspective of the chip distribution, it is the high concentration of chips.
The moving average can reflect the activity of a stock to a certain extent. Generally, it takes a long time for the moving average to stick together. And when bonding, the stock price is usually at a low level or has a relatively stable platform.
The trend after the moving average is bonded can be preliminarily judged from the historical position of the stock price. If the price is bonded at a low level, if the stock does not have the risk of delisting, the stock will wait until it has the volume to push it. The likelihood of an increase is very high.
If there has been no increase in volume, the stock price will have been lurking at the bottom, waiting for main funds to enter the market or for the arrival of a large or small bull market. If the moving average adhesion occurs at a high level of the stock price, the subsequent trend will be more dangerous, and the stock price after a sharp rise in the early stage is likely to turn downward.
In addition to judging from the stock price position, the stock price after the moving average is bonded will often continue to develop according to the original trend. In bull markets where the mid- to long-term trend is upward and in bear markets where the mid- to long-term moving average is downward, the phenomenon of moving average gluing may occur. The difference is that after the mid- to long-term upward moving average gluing occurs, the later moving averages usually diverge upward, that is, the stock price will break upward. When the medium and long-term trend is downward, after the moving average gluing occurs, the stock price usually diverges downward, that is, a decline occurs. .
Whether the moving averages are rising or falling after being bonded can also be judged based on the volume energy, K-line and the position of the moving averages. If there is also the assistance of policy and news, the accuracy will be higher. The rise and fall of the stock price cannot be judged by the moving average alone, because fundamentally, it is the rise and fall of the stock price that causes the change in the shape of the moving average, not the change in the shape of the moving average that causes the rise or fall of the stock price.