For example, the five-day holding cost of investors is the average cost of five days by adding up the prices from 1 day to the fifth day and dividing them by five.

According to the principle of average cost, the price trend is digitized, and the curve connected by the coordinate points corresponding to these numbers is the moving average line.

Second, the application cycle of M&A indicators

The moving averages in different periods can show investors the general trend of short-term, mid-line and long-term.

The moving averages of 5 days, 10 days and 20 days are regarded as short-term moving averages and called monthly moving averages.

20 days, 30 days and 60 days are medium-term moving averages, which are called quarterly moving averages.

60 days, 120 days and 240 days are long-term moving averages, which are called annual moving averages.

Thirdly, the use of moving average.

Analysis:

A is the 5-day moving average. Price head, 1 turn down, with inflection point and selling point.

B is the moving average 10, and at the second price, the head turns downwards, with inflection points and selling points.

C is the 20-day moving average, which turns head down at the third price, with inflection point and selling point.

D is the 60-day moving average, turning head down at the fourth price, with inflection points and selling points.

The order of selling signals is: 5, 10, 20, 60-day moving averages.

When it is combined with double top form or triple top form, it will be the best time to sell.