Category: Money tips Release Date: 2006-01-26
I After years of short-term actual combat, the use of weekly K-line 10-week moving average came to buy points and sell points, very easy to use, in fact, war is also a very high success rate, and its methods of technical analysis comes mainly from the core content of approach along the trend of prices of the second movement, a trend began to take shape in the short term this trend will be difficult to change, once the trend has been effectively broken, the stock will move along another trend. Here I concentrate primarily on the 10-week moving average and trend of relations.
10-week moving average in determining the stock price trends change there is a strong sense of actual combat. Commenting on the trend of change, but to talk about the rail lines, rail lines has been mainly in the origin of the trend line, the adoption of the first peak and valley made by the parallel lines, this is the track line of parallel lines. In the usual analysis system, the track line of the PMA index value is usually 10, so the track rail lines in the 10-day moving average, weekly rail lines in the 10-week moving average line is week in the rail track. Rail line in technical analysis theory, category theory, are tangent, so it continued to organize in determining the shape to break the old patterns of continuous finishing has a very unique role. 10-week moving average line as the weeks in orbit track trends in determining the stock price changes, compared with other technical indicators have a role in early signal. The real winners in the stock market are often in the original balance of the continuing trend of approaching break before finishing or breaking in the process of taking action to obtain benefits. In actual combat, when the stock price and effective breakthrough or fell below the 10-week average of time (that is, the track rail lines) are upward or downward trend in breaking the start. For example, in 1999, "5.19" Quotes starts the first week of stock, a shaved head big Yangxian break up a 10-week moving average, thus announced the start of a magnificent Quotes. Similarly in the September 30, 1999 stock index fell below the 10-week average of the effective, the "5.19" big ends, indexes into a long decline trend. After a long adjustment, after January 21, 2000, stock index and effective breakthrough in finishing second in the 10-week moving average, the Shanghai Composite Index in 2000 thus embarked on a wave of a larger market, until 2001, July 6 Day Shanghai Composite Index fell below the 10-week average of once again, the broader market thus giving rise to the historically unprecedented avalanche-style major adjustment. The index is based on the above enumerated cases, is equally applicable to individual stocks, investors can more than looking through the weekly K-line maps, serious insight.
A 10-week moving average, which tracks line the track line is the trend continuation and trend of changes in the key points of the band are good at speculation investors who have a very strong reference to the role of actual combat, which excludes the Japanese line and time-line hybrid wave, has judged that the characteristics of the trend changes. But investors should also note that in the use of mind: when you break a 10-week moving average in the relatively low and fell below the 10-week moving average in the relatively high when the effectiveness of the stronger. Breakthrough or below, the rate of 3%, preferably bald or bare wire at close. In addition, as a sophisticated investor, generally do not buy a 10-week moving average is effectively below the stock, do not sell the stock above the 10-week moving average, a 10-week moving average along the flow, will be the biggest winner.
