Category: Money tips Release Date: 2005-12-30
Investors Xiao yesterday to ask what those two days we are talking about "60-day moving average," said the tape in the 60-day moving average will take a firm rebound, but he also observed that the tape is indeed June 5, June 26 two days, dropped a green line started to rebound, and this is the average do? There are often referred to the 5 day MA 10 day MA 60 day MA and so on, which in the end, what role? How to use them to guide operations?
MA, also known as moving average line is the technical analysis of the more common form of analysis tools. We usually use the general ordinary moving average, which is a period of time the closing price or closing price point and the arithmetic mean, continuous connection to a full-mean average. In other words, average share price over time is the average transaction price (or known as chips cost). Common moving average can also be derived from a weighted average trading volume averages and so on.
In addition, the production of average, by reference to the time coordinate is different, average length of time the light or not, reflects the average cost of a different nature. 5, 10, for short-term moving average, reflecting the stock of short-term costs; 20, 30, 60-day moving average reflects the medium-term medium-term costs; 120 days, 250 days is a long-term moving average, reflecting the long-term costs.
At present, the technical analysis software is often given in 5, 10, 20, 30, 60 days, 120 days, 250-day MA. 120-day MA and 250-day moving average line is often referred to as six months, the annual line (which takes into account holidays factors).
Moving average support and resistance role
Under normal circumstances, investors use the average time, but also combined with the K-line, thus the stock price patterns to determine trends and technologies. The average and K-line, in combination, have had a support and resistance argument.
Technical sent analysts believe that the short-term moving average if the K-line touches (5, 10-day moving average for short-term average) and at the top of the income Yang Xian (closing price above the opening price), indicating that stock prices by short-term support, market outlook will remain high; if K-line and short-term moving average distance is too large, then the short-term profit-chips increases, stock up the pressure; if K-line touches the bottom of the short-term moving average and closed lower, indicating resistance by short-term, more likely to decline in market outlook; if K and short-term moving average line to widen the distance, then a rebound occurred.
Similarly, K-line in the up or down when touched on the medium-term (30, 60-day moving average for the medium-term average) or long-term moving average (half-line or annual line), the average will have the support or resistance effect. This is the recent market performance is particularly evident.
For example, the tape from May 30 to June 4 consecutive 900-point plunge, after June 5, in the 60-day moving average near the firm, and launched a strong rebound on the same day, the same day rose nearly 100 points. June 26, stocks in consecutive decline, but also started a rebound in the 60-day moving average.
MA also has time to failure
Investors should be vigilant, whether it is average, or K Line, described in these graphics are the stock runs track in the past. Although it can to some extent for us to provide a basis for forecasting the future direction of stock prices, but the graphic itself can not decide on the future price movements. Investors in the use of these technical indicators can not be too dogmatic. In use, investors also need to combine the fundamentals of learning and using.
In other words, if the K line fell below average support, or break through resistance averages, and continue to extend this trend, as evidenced by the short-term support and resistance failure. In practice, investors can combine their own set-up time K-line parameters, find the stock parameters.
In addition, the listed companies of the major substantive positive consecutive spikes, averages the system even if extreme divergence, but may not appear immediately drop this time, the average theory lapse.
In short, a single technical indicators is not an absolute truth, and investors in making policy analysis requires a combination of surface, surface and other factors, the market in order to make reasonable judgments.
