Average line
The moving average index is actually the abbreviation of moving average index. Because this indicator is an important indicator reflecting the price trend, once it is formed, it will last for a period of time, and the high point or low point formed by the trend operation has the function of blocking or supporting respectively, so the point where the moving average indicator is located is often a very important support or resistance level, which provides us with a favorable opportunity to buy or sell, and the value of the moving average system lies in this.
The upward moving average is a long moving average, and the upward crossing of the moving average is a golden cross, and vice versa.
Take the arithmetic average of the closing price of the first nine days of each day and the closing price of the ten days of that day, and then connect it with the arithmetic average of several days. The curve is the ten-day moving average. Similarly, there are ten-minute moving averages, ten-hour moving averages, and various moving averages made in different time units such as weeks, months and years. Usually, the average value of 10 time unit is collectively called 10 average value. A 20-fold moving average is a moving average of 20 time units. The above is a common practice. Some people take the average daily price, while others take the average weight. And the practice is different. In the K-line diagram, the constants are MA5, MA 10, ....
How to look at the five-day moving average of individual stocks on the computer?
The line with the same color as MA(5) above the K-line chart.
The five-day moving average is an indicator line connecting the five-day average stock price. It is a short-term indicator, and its trajectory is the most frequent and fastest. For example, if the stock price moves above the five-day moving average, it means that the stock is in a strong upward trend. Conversely, if the stock price quickly falls below the five-day moving average, you can consider short-term shipment.
I used to calculate and draw by myself. Now all technical analysis software can find the corresponding moving average in the K-line chart of a certain period of time. Because the moving average has a certain comparative effect on the stock price trend, it is very important for technical analysis. Generally, short-term trends are analyzed by daily lines MA5 and MA 10, medium-term trends are analyzed by MA30 and MA60, and medium-and long-term trends are analyzed by M 125 and M250. And do short-term operation with 5-30 minutes K-line, and analyze the long-term trend with the moving average trend of weekly, monthly and annual K-line.
Because the trend of stock price can be dynamically analyzed from the moving average, it is often used to set stop-loss points and take-profit points (high selling points), which is actually an activity scale determined through technical analysis. Only relative reference value.
There is no mature theory in the stock market, and the actual operation depends on our own experience and lessons.
As for the calculation, for example, the 30-day moving average is the closing price of the market for 30 days, divided by 30 to form the 30-day moving average, and then connected in turn to form the 30-day moving average.
From the morphological point of view: early intensive transaction area, early head (the inflection point from rising to falling), early bottom (the inflection point from falling to rising) and so on.
From the perspective of the EMA system, the 5th line, 10 line, 20th line, 30th line, 60th line, semi-annual line and annual line all have support, and the support is getting stronger and stronger in turn.
From the technical indicators, all kinds of technical indicators have their own support and pressure level, because there are too many indicators, you can see for yourself. Common ones are KDJ, MACD, Bohr, W%L, etc.
The commonly used moving average is mainly 5- 10-20-30-60 days.
The general characteristics of EMA are divided into bulls and bears. Long position means that the market trend is strong and upward, and the support level of EMA is long position under 5- 10-20-30-60 K line. The trend of long-term arrangement of moving averages is strong upward, and the operation idea is long-term thinking. Take the support point of the average price line as the buying point to enter the market, and break the average price line to support the stop loss.
Short arrangement means that the market trend is weak downward, and the moving average is on the 5- 10-20-30-60K line, and the K line is pressed downward to form a short arrangement. Average bears are arranged in a weak downward trend. Take the resistance level of the average price line as a selling point to enter the market and break the stop loss of the average price line.
Moving average is a common tool for technical index analysis, which is adopted by most technical analysts. The moving average of 5- 10 changes rapidly, and the commonly used moving average is 5- 10-20-30. The futures price changes quickly, and the moving average above 60 lags behind.
Under what circumstances will the average price soar unilaterally? The condition is that the moving averages of1-5-10-15-30-60-week-month are all arranged in multiple positions. In addition to other factors that led to the skyrocketing. On the contrary, the unilateral plunge is the same.
It will be more stable to grasp the trend with the moving average time of weekly and monthly lines, and it will not change much when the moving average is short. If the weekly and monthly lines are long or short, it will take a long time for the market to rise or fall.
The correlation of moving averages, such as the long arrangement of moving averages, the short arrangement of weekly moving averages, and the pressure of weekly moving averages, will lead to price fluctuations and may not rise, because the weekly moving averages will not change soon, leading to a major change in the trend. If the weekly line is also long, then the price increase will be more stable, and the trend will be more stable and will not change easily. If the 5-point moving average is long and 10 is short, then the failure probability of a 5-point rise will be higher. If the 60-point moving average is long, the short-term trading will maintain a strong support of 60 points, and the probability of successful short-term trading will be higher than 5 points. If the moving average is chaotic and there is moving average support under the moving average pressure, this is a shock potential energy, and the trend direction is unknown.
Buying and selling points, using the moving average to set the buying and selling points, the moving average system is the buying point and starting point of the bonding cross direction, and the range of price start is determined according to the links of different time charts. For example, the condition of 5 o'clock is met, 10 is not met, and the upward pressure of 5 o'clock is in the moving average of 10. The moving average system is a selling point under the adhesive reticle. It is the starting point of the decline.
The application of EMA system is to see whether the current trend is strong or weak, the signal of trading point, and the signal to start now.
The moving average system is a common technical tool for most analysts. From a technical point of view, the psychological price factors that affect technical analysts. Thinking about the decision-making factors of trading is a good reference tool for technical analysts, which lags behind the price changes.
How to look at the moving average
Definition of moving average: The moving average we use is a weighted average of daily closing prices, so as to get a trend trajectory. The moving average system is a common technical tool for most analysts. From a technical point of view, the psychological price factors that affect technical analysts. Thinking about the decision-making factors of trading is a good reference tool for technical analysts, which lags behind the price changes.
Characteristics of moving average:
1. Trend tracking. The construction principle of moving average index determines that it has the characteristics of reflecting the price trend.
2. Stability and hysteresis. Because the moving average is a new price point line generated by the arithmetic average of the closing price, it is more stable than the price change.
3. Help rise and fall.
The five-day and ten-day moving averages are the average closing prices of five days and ten days respectively. This is mainly the short-term trend of the stock market.
Stocks have four prices every day; Opening price-closing price-highest price-lowest price, these four prices form a daily K-line. Take the arithmetic average of the closing price of the first nine days of each day and the closing price of the ten days of that day, and then connect it with the arithmetic average of several days. The curve is the ten-day moving average.
Similarly, there are ten-minute moving averages, ten-hour moving averages, and various moving averages made in different time units such as weeks, months and years. Usually, the average value of 10 time unit is collectively called 10 average value. The 20-time moving average is the moving average of 20 time units, and everything else means this. The above is a common practice. Some people take the average daily price, while others take the average weight. And the practice is different. MA5, MA 10 and so on are often marked in the K-line diagram. I used to calculate and draw by myself. Now all technical analysis software can find the corresponding moving average in the K-line chart of a certain period of time. Because the moving average has a certain comparative effect on the stock price trend, it is very important for technical analysis. Generally, short-term trends are analyzed by daily lines MA5 and MA 10, medium-term trends are analyzed by MA30 and MA60, and medium-and long-term trends are analyzed by M 125 and M250. And do short-term operation with 5-30 minutes K-line, and analyze the long-term trend with the moving average trend of weekly, monthly and annual K-line.
There is no super analysis method to accurately analyze the trend of stocks. Therefore, if you study it carefully for many years, it may be useful, and this is only part of the analysis method. Because the trend of stock price can be dynamically analyzed from the moving average, it is often used to set stop-loss points and take-profit points (high selling points), which is actually an activity scale determined through technical analysis. Only relative reference value.
Personally, I think that if we can analyze the trend of the stock through such a simple method and it can be stable and effective for a long time (long-term/stability is very important), then everyone should stop copying stocks, haha. I suggest you find some basic books to read. There is no mature theory in the stock market, and the actual operation depends on our own experience and lessons.
The five-day moving average is an indicator line connecting the five-day average stock price. It is a short-term indicator, and its trajectory is the most frequent and fastest. For example, if the stock price moves above the five-day moving average, it means that the stock is in a strong upward trend. Conversely, if the stock price quickly falls below the five-day moving average, you can consider short-term shipment.
By analogy, the 10 moving average is also a short-term indicator, but its moving trajectory is slower than that of the 5-day line, but it is more accurate to judge the short-term shape of stocks than that of the 5-day line.
The five-day line and the ten-day line are commonly used indicators for short-term stock trading. For the five-day line, if the five-day line is below the ten-day line, then the average price of the ten-day line constitutes short-term pressure; If it is above, it constitutes a short-term support.
Drawing method of moving average
How is the five-day moving average drawn? For example, today is 10 and 10, so is there a moving average today? How to calculate? Is its value (5+6+7+8+9)/5 or (6+7+8+9+ 10)/5?
It is (6+7+8+9+ 10)/5, in which the closing price is on the 4th, 7th, 8th and 9th, and the price on the 6th, 7th, 8th and 9th is the dynamic price in the trading process, and it is the closing price after the closing, and the five-day moving average is fixed.
First, the average line arrangement:
The commonly used moving average is mainly 5- 10-20-40-60 days.
The general characteristics of EMA are divided into bulls and bears. Long position means that the market trend is strong and upward, and the support level of EMA is long position under 5- 10-20-40-60 K line. The trend of long-term arrangement of moving averages is strong upward, and the operation idea is long-term thinking. Take the support point of the average price line as the buying point to enter the market, and break the average price line to support the stop loss.
Short arrangement means that the market trend is weak downward, and the moving average is on the 5- 10-20-40-60K line, and the K line is pressed downward to form a short arrangement. Average bears are arranged in a weak downward trend. When entering the market, take the resistance level of the average price line as the selling point and break the stop loss of the average price line.
Second, the crossing of moving averages.
1, the 5-day moving average goes below the 10 moving average, and the 10 moving average is flat or down at a high level, so there will be a downward trend;
2. 10 moving average goes below the 20-day moving average, and if the 20-day moving average goes flat or falls, there will be an intermediate decline;
There will be no big market if the 3.40-day moving average goes flat or falls, and the weak market rebound hardly exceeds the 40-day moving average;
4.5 moving average and 10 moving average are dead forks, and you must escape from the top or stop loss;
5. If the gold price closes below the 5-day or 10 moving average, stop loss must be made;
On the 6th, 5th and 10 moving averages, they crossed the 20th moving average to form a triangle and left permanently; (Death Triangle) The sun sets.
On the 7th and 5th, the moving average crosses the 10 moving average, and the 10 moving average is flat or upward, so there will be an upward trend.
8. If the 10 moving average crosses the 20-day moving average, and the 20-day moving average is flat or upward, there will be an intermediate rising market;
9. The 5-day moving average and 10 moving average in the low area are a buying point.
10, 5, 10 moving average crosses the 20-day moving average to form a triangle, and the future market may be bull market.