Category: Money tips Release Date: 2007-03-05
Bonding pattern with the average stock, once the higher its rate of increase is often relatively large. An example of this there are a lot of actual combat.
MA study its fundamental bond is determined by average characteristics of their own decisions. We know that average is the average price of computing, thus, we can know that the formation of the so-called average bond forms because in fact the stock price over a long period of shock finishing, making long-and short-term average value close to form, from the perspective of moving averages is the average bonding, from the morphological point of view, is a cabinet order, from the point of view the distribution of chips is a chip is highly concentrated.
The stock movement is constant immobile. The direction of its movement is not things, up, down for peace. From past experience and the characteristics of movement we know that the stock's "flat" is a relatively static, with the inevitable movement pattern for the other two replaced. As a result, our stock-picking time, find a flat plate with the stock becomes particularly meaning.
So, how to find form with a average bond stocks? The most direct way is to set the master plan targets more than the state average, and then one by one to read, artificial determine the stock with a flat plate shape. Although this is a very effective way, unfortunately too exhausting. Moreover, because the visual differences, for some cabinet finishing stocks, we tend to think that the band obviously does not think that it is the flat plate finishing, in fact, carefully calculate its up and down the band room for the whole band may be only 100 a few parts per. Once the stock price rose or fell, the original look of the K-band apparent line graph becomes an absolute sideways pattern. Therefore, we need to rely on indicators to look for a reasonable calculation of average bond stocks.
We can MA (20)-MA (90)) of such a formula. The meaning of the formula is calculating the 20-day moving average and the 90-day moving average absolute value of the difference. The smaller the absolute value illustrate the two represent the short-term and long-term moving averages directly from the smaller, the more closer to bonding. Index calculation, we use the sorting function screening, they could be selected to form with a average bond stocks.
Here we must note, is not the average bond's shares will rise, because there is no absolute so-called laws. But also in the application must pay attention to the relative positions of average bond is high or low adhesive bonding that is very important.
Why should the indicators of this sort, this is a very important issue. We can understand the stock market as a sports arena. We know that in sports competition, the absolute first is meaningless, and only a relative first meaningful. Simply, it is a person's race, no matter how fast you run, you can not say you are a champion. Must be a multiplayer game together in order to compete for a championship. Stock is the same, only through the horizontal comparison, we can identify with a winner temperament stocks.
How to determine the location of the high and low stock prices do? In fact, this is a fundamentally unable to judge the issue, but in practice they have to face. So, how can a more reasonable solution to this problem? After the study, the original targets could be optimized. Namely, the formula becomes MA (20)-MA (90)) / MA (60). The reason for this is to optimize the horizontal comparison in the same time as the introduction of vertical comparison. Namely, stock-now trends and to compare the trend of history and thus hope for the future to play a certain sense, the operation of help. This indicator algorithm, sounds simple, but the content covered is very large, if we can truly understand will greatly benefit from.
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