K-line chart in stock is composed of several moving averages, which are divided into annual line, monthly line, weekly line and daily line. These moving averages are calculated in real time. K line consists of opening price, highest price, lowest price and closing price of the day.
If the opening price of the day is higher than the closing price, it is an increase; If the opening price of the day is lower than the closing price, it is a decline. If the day goes up, the bar chart is red, if it goes down, the bar chart is green.
The annual average is essentially a simple moving average, but its parameters have some special significance. The annual line represents the moving cost of all investors in all trading days in a year, and it is one of the most important reference lines in the moving average system.
The stock annual line refers to the 250-day moving average, because all trading days add up to about 250 days except normal rest days and holidays in a year. In stock software, putting the mouse on different colored lines will display the number of MA, for example, MA250 represents the annual line and MA30 represents the 30-day moving average.
How to look at the annual line of funds in the field?
When ETF rises, if the annual line is higher than the on-site fund, then the annual line is the pressure line at this time. If you can't break through, it means that ETF may fall back when it is blocked, and the market may go up after adjustment, or it may turn around.
When ETF falls, if the annual line is lower than ETF fund, the annual line is the support line. If the ETF price stops falling near the annual line, it indicates that it may start to rebound. If it falls below the annual line, it will not rebound effectively, which may indicate that the price of etf will fall further.