Expand knowledge:
1. Long-term and short-term computing companies
1. Mid-term distribution =(3× closing price+lowest price+opening price+highest price) ÷6
2. Long and short lines =(20×MID+ 19× MID+18× 2 MID+17× 3 MID+16× 4 MID+/5× 5MID) before mid.
3. M-day simple moving average of moving average MADKX=DKX
Parameter m is generally set to 10.
Second, the application rules of multi-space lines
1. Set overbought and oversold lines. Because the characteristics of each stock are different, the standards of overbought and oversold are different. Investors need to observe the trend chart of individual stocks for more than one year, observe their normal distribution range, and then set their overbought and oversold ranges with reference lines.
2. When the long-short line crosses its moving average in the oversold area, it is a buy signal.
3. When the long-short line crosses its moving average below the overbought area, it is a selling signal.
4. When the stock price is above the (long and short line), it is considered as a bull market and the long strategy is adopted.
5. If the stock price is lower than (long and short lines), it is considered as a short market and a short strategy is adopted.
Third, the common indicators of moving average
The common lines of EMA are 5 days, 10 days, 30 days, 60 days, 120 days and 240 days. Among them, the short-term moving averages on the 5th and 10 are the reference indicators for short-term operation, which are called the moving average index; 30 days and 60 days are medium-term moving average indicators, called quarterly moving average indicators; 120 and 240 days are long-term moving average indicators, which are called annual moving average indicators. The investigation of the moving average is generally carried out from several aspects.
Shareholders' friends can use the moving average as a reference index when choosing stocks. The moving average can reflect the price trend. The so-called moving average is to average the stock prices in a certain period of time and then make an average image based on this average. Shareholders can analyze the daily K-line chart and moving average in the same chart, which is very intuitive and clear.
The most commonly used method of moving average is to compare the relationship between the moving average of securities prices and the prices of securities themselves. When the stock price rises above the moving average, the buying signal is generated. When the price of a security is lower than its moving average, a sell signal will be generated.
This signal is generated because people think that moving averages and "lines" are powerful standards to support or block prices. The price should rebound from the moving average. If the breakthrough does not rebound, it should continue to develop in this direction until it finds a new level that can be maintained.