1, moving average line
The use of statistics to “moving average” principle, will be moving day average share price, find an average, be linked to obtain the average line.
Second, the types of moving average:
According to the length of time can be divided into: short-term moving average line, the medium-term moving average line, and long-term moving average line.
(A) short-term moving average line:
Are generally in 5 days and 10 days for the calculation of the period, representing an average price of a week, can be used as the basis for short-term access.
(B) the medium-term moving average line:
Mostly on the 30th subject, known as the month moving average, on behalf of one month’s average price or cost, there are four less to do on Sunday to 26 days moving average. Another Qishierri moving average line, commonly known as quarter-line. Generally speaking, the effectiveness of a very high month moving average, particularly in the stock market is not yet quite clear in advance the show price changes in the direction of the future.
(C) Long-term moving average line:
In Europe and the United States stock market technical analysis used in the long-term moving average line, more than 200 days in order to prevail. Because after a U.S. investment expert Genan Wei, research and test moving average line system, considered the most representative of The co moving average, is a super-large in the country is really hand-operation of households and the stock later reference key indicators, investment will in the coming year trends in the world and the domestic economy, the industry outlook, the stock issuing company’s growth rate of production and marketing conditions and, after careful study, and then with the other investment environment (such as bank interest rate changes, real estate value-added ratio, as well as investment returns to set up factories rate) to do a comparison, if the more profitable investing in stocks, then conduct market operations. As the access to the large number of long period of speculation, we must understand the changes in the average cost of the case, so this sample size, can best represent the long-term moving average line.
(D) moving average of the features:
Stock technical analysis were used to analyze the stock price moving average trends, mainly due to the moving average line has several characteristics:
1. Trends features: moving average trend in the direction of stock prices can be expressed and therefore have a tendency in nature.
2. Prudent characteristics: unlike the day moving average line will be ups and downs of the shock. Ups and downs but fairly steady. The usual upward slowly upward, downward usually slowly downward.
3. And stability characteristics: often the more long-term moving average line, the better it will show the characteristics of stability, that is not easily moving average line up down, stock prices must be really clear, and moving average line will extend up and Regular price began to fall at the beginning, moving average is up, until a significant decline in stock prices only when they see the moving average decline, which is most important feature of the moving average line. The more short-term moving average line, stability worse, the more long-term moving average line, the stronger stability, but also which makes moving average line of the delayed response characteristics.
4. Fueled features: share price up from an average line break below the average line has begun to move the upper right can be seen as a bullish support line, the stock fell back to average in the vicinity, it will naturally produce the strongest support for the short-term moving average line up fast, medium and long term moving average line back to the slower, but they all indicated that the average cost within a certain period increased slightly stronger than the buyer if the seller’s strength, the stock fell back to near the average, that is to buy time, which is the average line of The fueled the effect, until the stock price rose or fell back slowly, with an average line began to slow moving, the share price to return to average near the average loss fueled the performance, there will be return to the trend of below average, it is best not to buy.
5. To help or characteristics: the other hand, under the direction of stock prices from an average line break, the average line has begun to move the lower right, becoming short resistance, the share price back up to average near naturally occurring resistance, the average line down go to the average rebound in the stock is selling near the time, the average line at this time will help down the role. Until it fell slow or rebound, with an average line started slow moving stock Ruozai with the average closer to the average line will be lost meaning to help or there will be return to the trend of the average line-side, without a hurry to sell.
Third, moving average of the judgments techniques:
Genan Bi moving average eight rules:
(A) the moving average line to buy time to
1. Average fell gradually away from the flat, while the average share price below the break from the average line, is a buy signal.
2. Shares fall into the average, although the line, while the average line is still up, and soon reverted to the average online time for the buy signal.
3. Stock trend line to go above the line on average, stock prices suddenly dropped, but not below average, the stock rose again, you can buying the.
4. Shares of the trend line below the average line, a sudden collapse, away from the average time when the trend is very likely to be average is to buy time.
(B) moving average line, time to sell:
5. Average rose gradually away from the flat trend, while the stock price down from an average of the top of the line below the average line, should be a selling opportunity.
6. Stock up while the average break-line, but immediately revert to the below average, and average continues to fall it is time to sell.
7. Shares below the trend line in the average share price rose, but again, fallen below the average it is time to sell.
8. Shares rising trend line, and walking in the average above the line, suddenly soared away from the average is likely to be the average trend line,
For the time to sell
