When the stock price rises and breaks through the moving average, or the weekly or monthly moving average, it continues to rise, which is a buying signal; When the stock price falls and breaks through the moving average, or the weekly moving average or monthly moving average continues to fall, it is a selling signal.
The shorter the time period of weekly and monthly lines, the more sensitive they are to market changes, and the longer the time period, which can help us to see the overall trend of stocks. Daily line, weekly line and monthly line all reflect the trend of stock price, but different lines play different roles in analyzing stock market.
What is a daily line?
The daily line is a line consisting of the opening price, closing price, highest price and lowest price of any day. Its shape is mainly determined by the opening price, closing price, highest price and lowest price, generally thick in the middle and thin at both ends. The daily line is a graph that records the daily trend of the target, but it is generally determined by the opening price and closing price.