Moving average classification
Moving averages are divided into ordinary averages and exponential averages.
Ordinary moving average: average the closing price in the past period. For example, the 20-day moving average is the sum of the closing prices of the past 20 trading days and then divided by 20 to get a value; Then push yesterday back to 20 trading days, calculate another value in the same way, and so on, connect these values to form an ordinary moving average.
Exponential moving average: the formation method is exactly the same as the ordinary moving average, but the calculation method is different when calculating the moving average. For example, the 20-day moving average and the index moving average use the index weighted average method. The closer to the day, the greater the proportion, rather than evenly distributing the proportion like the ordinary moving average. Therefore, in most cases, the moving average can reflect the latest changes more quickly.
Introduction: The upward moving average is a multi-head moving average, and the upward crossing of the moving average is a golden cross, and vice versa.
Moving average diagram
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.
Edit the ordinary moving average of this paragraph.
Use the 5- 10-20-30-60 moving average.
In the K-line chart, MA5, MA 10, MA20, MA30 and MA60 are often marked.
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, the short-term trend is analyzed by daily lines MA5 and MA 10.
Analyze the medium-term trend with MA30 and MA60,
Analyze the long-term trend with 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.
Edit the moving average calculation of this paragraph.
For example, the 30-day moving average of the Shanghai Composite Index is the sum of the closing prices of the Shanghai Composite Index for 30 consecutive days, divided by 30 to form the 30-day moving average, and then connected in turn to form the 30-day moving average, and so on.
Edit the characteristics of this moving average.
The general characteristics of moving averages are divided into bulls and bears.
Long arrangement means that the market trend is a strong upward trend, and the support arrangement of the moving average is a long arrangement 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.
Application of editing the moving average of this paragraph
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. Futures prices change rapidly, and the moving average above 60 lags behind.
In addition, because the trend of stock price can be dynamically analyzed from the moving average, people often use the moving average 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.
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.
Can be analyzed from several aspects:
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.
Edit the conditions for rapid inflation in this paragraph.
The condition is that 1 point -5- 10- 15-30-60 day-week-month moving averages are all arranged in multiple positions. In addition to other factors that affect the skyrocketing. On the contrary, the unilateral plunge is the same.
The trend of the average time of weekly and monthly lines will be relatively stable, and the average will not change much when it 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 daily moving averages, the short arrangement of weekly moving averages and the pressure of weekly moving averages, will cause the price to fluctuate and rise, or it may not rise, because the weekly moving averages will not change quickly, which will affect the trend more. 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 the 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.
In this section, edit the eight rules of glanville EMA.
1, the moving average gradually leveled off from the decline and rose slightly, while the stock price broke down from the moving average, which was a buying signal.
2. the stock price runs above the moving average, and it is a buying opportunity if it does not fall below the moving average and then rises again.
3. The stock price runs above the EMA and falls below the EMA when it returns, but the short-term EMA continues to show an upward trend. This is the time to buy.
4. The stock price runs below the moving average, suddenly plummets, is too far away from the moving average, and is very likely to be close to the moving average (extremes meet, falling and rebounding). This is the time to buy.
5. The stock price runs above the moving average, rising sharply for several days, getting farther and farther away from the moving average, indicating that the people who bought the stock recently have made a profit, and there will be profit selling at any time, so they should sell the stock temporarily.
6. The moving average has gradually leveled off from the rise. When the stock price falls below the moving average from the top of the moving average, it means that the selling pressure is getting heavier and heavier, and the stocks held should be sold.
7. The stock price runs below the moving average, but it doesn't break through the moving average when it rebounds. The falling speed of the moving average slows down, then it tends to be horizontal, and then it shows a downward trend. This is the time to sell.
8. After the stock price rebounds, it hovers above the moving average, but the moving average continues to fall, so it is advisable to sell the stocks it holds.
Articles 3 and 8 of the above eight rules are not easy to master, and their specific application is risky. Before mastering the rules of using EMA, you can consider giving up using EMA.
Articles 4 and 5 do not specify how far the stock price is from the moving average, which can be solved by referring to the deviation rate.
Edit the buying opportunities of this moving average.
Radical and steady
For radical investors, this is the first time to bond and diverge upwards, or the first time to cross and diverge upwards.
This is not only a buying opportunity for steady investors, but also a buying opportunity for radical investors. They unite and diverge upward again, or cross and diverge upward again.
Why do you say that? Because EMA diverges upward for the first time (including adhesive divergence and cross divergence), the multi-party foundation is not stable. If the short selling power is great or the multi-party upside power is insufficient, the market may abort at any time. Therefore, in this case, for the sake of capital safety, steady investors should continue to wait and see, and do not attack easily. Aggressive investors can actively follow up on the premise of setting a stop loss. However, the upward divergence of the EMA again (including upward divergence by re-bonding and upward divergence by crossing again) is very different from the upward divergence of the EMA for the first time. At this time, the multi-party foundation is relatively stable; Many main forces attack upward again, often prepared, and the possibility of stock prices continuing to rise is much greater than when they diverged upward for the first time. At this time, cautious investors can take the initiative to attack, and aggressive investors can boldly take the strategy of actively doing more when the risk coefficient is reduced (see Table 28 for details).
Aggressive investors originally pursued high returns under high risks. When the EMA diverges upward, they feel that the opportunity has come and will naturally take the initiative to attack. Of course, the risks involved are also great. We can imagine: after the EMA diverges upward for the first time, it continues to diverge upward, and the stock price will go up, and radical investors can make a lot of money; After the moving average diverged upward for the first time, it quickly converged and the stock price fell. Aggressive investors will have some losses even if they stop their losses in time. If the stop loss is not timely, or because there are few chips thrown. The loss is even greater. It can be seen that although radical investors sometimes get a good return on investment by doing so, the risks and pressures they bear are difficult for outsiders to understand.
Five-day moving average trading method
(1) The stock price is too far away from the 5-day line and too much higher than the 5-day line, that is, the "five-day deviation rate" is too large, which is a short-term selling opportunity. How much deviation rate can be sold depends on the strength and size of individual stocks.
Generally, the stock price is 7% to 15% higher than the 5-day line, which is on the high side and suitable for selling. If it is a bear market, the stock price is generally 7% to 15% lower than the 5-day line, which is suitable for short-term buying.
(2) If the stock price falls back and does not break through the 5-day line, it is suitable for buying when it starts again. Generally speaking, on the way up, slow bull stocks often don't break the 5-day line or the 10 line. As long as it is not broken, you can continue to hold positions in combination with the general trend and the fundamentals of individual stocks. If it is a bear market, if the stock price rises and does not break through the 5-day line, it is suitable for selling when there is another big sell-off and decline.
(3) If the stock price falls below the 5-day line and the 5-day line can't pass, you need to beware of chasing the quilt cover and pay attention to selling on rallies. If it is a bear market, if the stock price rises above the 5-day line and fails to break through the 5-day line callback, or the 5-day line falls below but stops falling, you need to beware of bargain hunting and repurchase.
(4) The stock price effectively falls below the five-day line, and generally falls to the 10 line or the 20-day line. If it falls to the 10 daily line, the 20th daily line stabilizes and the stock price restarts, you can make up the chips sold at a high level in a short time as appropriate to avoid being short. If it is a bear market, the stock price effectively rises above the fifth line, and generally rises to the 10 line or the 20th line. If it rises to near the 10 daily line and is blocked near the 20th daily line, and the stock price starts to fall again, you can sell the chips bought at the low level in a short time as appropriate.
Ten-day moving average operation method
Current strategy.
The best policy: wash your hands of it for a while and do more business. The stock market is not the only way. Waiting for the next bull market. This is the highest realm of speculators.
The best policy: study technology, only intermediate.
The best policy: bargain-hunting diligently and make a rebound.
In China, technology is dominant, supplemented by fundamentals.
The fundamentals are more macro (economic situation) and less micro (dividends and personal announcements). Technically, there are many classical indexes (KD, MA) and few modern indexes (wave theory, four-dimensional space).
The operation method is simple. Only when the closing price is on the 10-day moving average can you consider buying stocks. The closing price must be sold below the ten-day moving average.
Jumping point of dark horse
The pull-up point of most dark horses is near the daily line 120.
The first is the upward volume breakthrough after finishing under 120. The general finishing form is W bottom.
Second, it oscillated slightly up and down around the 120 moving average, and then it broke through in volume. The arrangement is not very regular.
Third, finishing above the 120 moving average, and then breaking through the upward volume, the finishing form is mostly W-bottom or "one" shape.
It is best to cooperate with other indicators, mainly referring to the technical indicators of KDJ, WR and MACD.
Moving average market measurement method
1. When the stock market entered a bull market, the stock price broke through the 5-day, 10, 30-day and 60-day moving averages from bottom to top.
2. When the bull market enters a stable rising period, the 5-day, 10, 30-day and 60-day moving averages all move to the upper right, forming a long arrangement from top to bottom.
3. When the 10 moving average moves from rising to the lower right, the 30-day moving average still moves to the upper right, indicating that the decline during this period is a technical retreat of the bull market and the rebound is not over.
4. If the 30-day moving average also follows the 10 moving average to the lower right, while the 60-day moving average still moves to the upper right, it means that there is a deep retracement in this band, so it is appropriate to wait and see.
5. If the 60-day moving average also follows 10 and the 30-day moving average to the lower right, it means that the bull market is over and the short market is coming.
6. During consolidation, the 5-day, 10 and 30-day moving averages will be intertwined. If the market time is prolonged, the 60-day moving average will be bonded with it.
7. When the market is in the general trend, if the 5-day and 10 moving averages break through and rise to the upper right, the market outlook will inevitably rise; If the 5-day moving average of 10 goes down to the right, the market outlook will inevitably fall.
8. When the stock market turns from a bull market to a bear market, the stock price first falls below the 5-day and 10 moving averages, and then falls below the 30-day and 60-day moving averages in turn.
9. In the short market, the average back pressure is above the stock price and moves to the lower right. The order from bottom to top is the stock price, and the average of the 5th, 30th and 60th days is short.
10. In the short market, if the stock price breaks through the 5-day and 10 moving averages and stands firm, it is a sign that the stock price rebounds in the short market.
1 1. In the short market, if the stock price breaks through the 5-day moving average and the 10 moving average and then stands on the 30-day moving average, the 10 moving average and the 30-day moving average will form a golden cross, and the rebound will become stronger, and there is still some room for growth in the market outlook.
12. In the short market, if the stock price successively breaks through the 5-day, 10, 30-day moving averages and breaks through the 60-day moving averages, the intermediate market will rebound strongly, even the short market will end and the long market will begin.