How to calculate the 5-day moving average
1. Calculated decline: (closing price four days ago-closing price today) /5
2. The five antenna points displayed on the disk-the upper limit speed.
Example: the first step calculation: (2463.05-2395.07)/5= 13.6. This result is the decline rate, that is, if the market opens tomorrow, the five antennas will fall by 13 points, and the market will be corrected by one point for every five points! In other words, the market was flat the next day:
5 antenna =2420.49- 13.6=2406.9 If it is opened five points higher, then 5 antenna =2406.9+ 1=2407.9.
As long as the decline is calculated at the close of the day, it will be clear at a glance how the five antennas will change the next day. Although it is only a simple five-antenna observation, it is quite practical, as long as you understand it carefully.
The above example is simple. Translated into words, that is, according to the random example above, the fifth line of actual observation the next day:
Flat opening is: index 2395, five antennas 2407 points,
After opening higher or rising by 5 points, it is: index 2400, 5 antenna 2408 points.
After opening higher or rising 10, it is: index 2405, 5 antenna 2409.
After opening higher or rising 15, it is: index 24 10,5 antenna 2410.
Application of 5-day moving average
How to look at the 5-day moving average, as long as you master the eight laws of the moving average theory. There are six simple and practical things to understand:
1, look at the change: the moving average gradually leveled off from the downward direction and began to rise slightly, and the stock price also broke through from the downward direction of the moving average, which was regarded as a buying signal.
2. Look at the support: when the price is above the moving average, it does not fall below the moving average and rises again during the callback process, which can be regarded as a buying opportunity.
3, look at the moving average adsorption: when the price is above the moving average, it falls below the moving average during the callback, but the moving average is still up, so buy at this time.
When the price suddenly plummets below the moving average, it is too far away from the moving average, and it is also very likely to approach the moving average (extremes meet, falling and rebounding). This is also a buying opportunity.
The stock price runs above the moving average, rising sharply for several days, getting farther and farther away from the moving average, suggesting that the buyer will make a profit in the short term, and the selling pressure that may make a profit at any time should be temporarily reduced or sold. You can refer to the ENA track route for further judgment!
4. Turning point of view: The moving average has gradually leveled off from the rise. When the stock price falls below the moving average from above, it means that the selling pressure is getting heavier and heavier, and the stocks held should be sold.
5. The price runs below the EMA, does not break through the EMA when rebounding, and the decline of the EMA slows down, and then tends to be horizontal and then shows a downward trend. At this time, the rebound estimates the opportunity.
6. After the stock price rebounds, it hovers above the moving average, but the moving average continues to fall, so it is advisable to sell the stocks it holds. The third and fifth rules in the above rules are not easy to master, and the specific application is risky. Before you master the rules of using the moving average, you can consider giving up using it. Articles 4 and 5 do not specify how far the stock price is from the moving average. You can refer to the deviation rate or other indicators to judge and confirm!