After the last round of decline, the stock price broke through the 20-day moving average, and with the cooperation of stock trading volume, the trading volume broke through this moving average, which is the technical point that can be operated. After three or five trading days, the 20-day moving average can be used as a buying point. Of course, all purchases must be followed up by the operating system. As shown in the following figure, it is not difficult to see that after breaking through the 20-moving average, the trading volume has been enlarged and a magnificent trend has emerged.

Second, fall back to the 20-day line in the rising channel and don't fall below the support.

For stocks on the way up, you can wait until you step back on the 20-day line and do not fall below the support, as a new buying point on the 20-day line. As shown in the figure below, the stock has stepped on the 20-day moving average many times and has not broken its position. If you follow the 20-day moving average, the profit of this stock will always be in its hands.

Extended data

The 20-day moving average is the average closing price of a stock in the first 20 days of the market, and its significance lies in that it reflects the average cost of the stock for 20 days.

The 20-day moving average is the one with the largest parameter in the short-term moving average system. Compared with the 10 moving average, the time interval of the 20-day moving average is longer than the 10 moving average by 10 trading days, so the frequency of change of the 20-day moving average is much greater than that of the 10 moving average.

The application of the 20-day moving average in actual combat should pay attention to the following conditions:

1, the 20-day moving average is close to the medium-term moving average, although it belongs to the short-term moving average, because the selected cycle parameters are relatively large. Therefore, in actual combat, when using the 20-day moving average to judge the market trend, we should consider the short-term trend, not just the short-term changes, otherwise there will be operational errors.

The trend judgment of the 2.20-day moving average still means that the short-term trend is upward, and the downward trend means that the trend is downward. Therefore, when using the 20-day moving average to analyze the trend, it can also be used to judge the position of market support or pressure, but at the same time, we must pay attention to the effectiveness of the 20-day moving average as support or pressure, otherwise it will lead to false stop loss.

The 3.20-day moving average will be relatively stable during the operation of the box in the market, that is, if the market fluctuates little, the 20-day moving average may be in a state of almost parallel operation.

20-day moving average of resources Baidu Encyclopedia