If it is a unilateral bull market, pay attention to the 60-day moving average, and the trading operation is basically determined. If it is a unilateral bear market, don't look at those with low psychological endurance, which are basically downward trends.
But whether it is down or up, whether it is cowhide market or seesaw market, whether it is shock market or slow bull market, it is very necessary and important to set up an additional moving average. It is necessary to set 5, 10, 20, 30, 60, 120, 243 (annual line), 486 (biennial line), 729 (triennial line), annual line, biennial line and triennial line.
Each line has a separate function and meaning, as shown below:
1.5 moving average (attack line)
The attack line is upward, the stock price rises and breaks through the attack line, and it is bullish in the short term. In the same way, the stock price falls below the 5-day moving average, which is short-term bearish.
Ii. 10 moving average (quotation line)
When the trading line continues to rise, if the trading line is broken by the stock price, it means that the middle line of the band is rising, and vice versa.
Third, the 20-day moving average (auxiliary line)
Auxiliary 10 moving average is its main function. On the one hand, it promotes the price operation and price trend; On the other hand, some amendments can be made to stabilize the direction of price trend. When the intraday auxiliary line is in a state of continuous upswing and the price exceeds the auxiliary line, the mid-line market of the band begins to see more, but it is empty.
Fourth, the 30-day moving average (lifeline)
The function is to point out various movement trends of the stock price in the medium term, and the lifeline plays a powerful role in pressure and support. Day trading is similar. If the lifeline is on the rise and the stock price breaks through or is above the line, it means to be bullish or bearish.
Verb (abbreviation of verb) 60-day moving average (decision line)
According to this, we can see the mid-term reversal trend of the price, and guide the large-band level of the price to run in the predetermined trend. In fact, the basic main force will attach great importance to this moving average, which can play a great role in the medium-term trend of stock prices.
6.120th moving average (trend line)
The function is still the same, that is, to point out the long-term reversal trend of prices and guide/guide the large-scale price band to run in the established trend. If the stock price exceeds the trend line, it should not reverse in a short time, at least for more than ten days.
7.250-day moving average (annual line)
You can refer to the annual line to judge whether you can invest for a long time. It can reflect the general situation and performance of the company.
These are the related functions of each line. If you want to have a better effect, you need to combine multiple moving averages for analysis.