Moving Average MA theory and timing of stock trading Money Tips

Category: Money tips Release Date: 2006-06-23

Moving Average (MA) theory is the most common type of stock market technical analysis methods, it has a fantastic stock brokers guide.

First, what is moving average line

Moving average line is to a certain period of time the stock or stock index average of the coordinates of the graph formed by the curve, moving average can be judged according to the stock market or individual stocks of the basic trend, in general, a gradual upward moving average, the stock market The trend is rising. On the contrary gradually moving average down, then the stock market trend is down.

Second, the "golden cross", "Death Cross" and played into the timing of

Was divided into short-term moving average moving average line (10) and fast moving average line and the long-term moving average line (), also known as the slow moving average. Through multiple moving average lines cross to determine the best time to enter appearance. This has created the so-called "golden cross" and "death cross."

1, "Golden Cross"

When the 10-day average line from the next 30 days to live on average across the 10-day moving average in the 30-day moving average in the next, their intersection is a gold cross, gold cross is a bull's performance, there golden cross, the afternoon today have a certain or space, this is the best time to approach.

2, "Death Cross"

When 30-day moving average and 10 day average line cross, 30-day moving average live across from the next 10-day average line, form a 30 average in the previous 10-day moving average in the next, its point of intersection called the "death cross", " Death Cross "signal to monitor the bear market, the stock market will fall this time that the best time to market.

Third, the moving average line and the timing of stock trading

Moving average to reflect the changes in stock prices, we can use moving average line theory to grasp the timing of buying and selling stocks.

1,10-day MA by the K-line diagram, K-line at the bottom. Tian-li from idling more than it is to buy time.

2,10-day MA, 30-day moving average and the 72-day moving average are from top to bottom through the K-line diagram, it indicates that the momentum is extremely strong stock bull, rally is a foregone conclusion, is to buy time.

3,10-day MA, 30-day moving average and the 72-day moving average chart at the bottom of K parallel to shape, then a bull market, or a great afternoon, is to buy time.

4,10-day moving average charts by K under the program the more K to the K line graph line graph above. Indicated that short-term change by more than air, is the time to sell.

5,10-day MA, 30-day moving average and the 72-day moving average into the sequential bottom-up approach across the K-line diagram, the unit will have a deep decline, it is timely to sell the stock.

6,72, 30-day moving average, after following the 10 moving average, from the bottom-up through the K-line diagram, the lower right move, or will be deep, it is timely to sell the stock.

7,10, 30 and 72 day average line in the K-line diagram and the three lines was parallel to the top like that bear market has been established, to be sold all the shares.

8,72-day moving average rising trend to flat or to below the transition time, in time to sell.

If a good use of the moving average line theory, can not determine the real trend Quotes can obtain substantial profits, but the moving average line theory is not the only technical analysis method. It has a limitation: First, the moving average of the stock price resulting from a graphical shape, reflecting slower. In addition, the stock price does not reflect the changes in the day and the volume size. Integrated use of other technical analysis methods to achieve better results.