Special moving average line and the gold selling points Money Tips

Category: Money tips Release Date: 2007-03-24

Author: spring to sprout

A day's closing price as the benchmark price of different cycles and then the sum of the average data generated by a price-point, followed by Zaiqu connect to these price points posed by the smooth curve is the stock price moving average.

Deep-rooted meaning of the concept is defined as a relative cycle positions of all investors in the average cost, if the market price is much higher than the above, it shares the risk of running a relatively large, if the market price or below, in its Some say that the hovering in the vicinity, this time the stock relatively safe operating condition, indicating stocks itself is pregnant with the potential to do more kinetic energy.

Principles of Perspective: This is nothing to say in order to run averages as a point of reference price, stock prices rise and fall with the average position itself is closely related. When the stock price from the average market cost far, indicate a larger deviation, so that the end is going to find a balance point, and this is precisely the share price above the average, and distance often occur naturally drop gesture, in order to seek between price and cost balance. Similarly, stock prices are below average, and far from the average, the time to seek a balance will rise in the same way to balance the mismatch between price and moving average pattern.

20 stock price moving average is the average of positions within one month of the cost of investors. In all cycles are short-term above-, medium-, under a special period of time, they are often also called a special moving averages. In fact, taking into account both short-term nature of war operations, but also a very good expected future stock price over time the overall trend, which operation to do a short-sighted has important strategic significance.

In general, stock prices were poised over a long period of strong growth began after the cycle, especially in the running to start at the beginning of always encounter some difficult to avoid strong resistance, which means most of the digestive disorder are based on stock prices fall under the main share price when the market fell back to positions within a month the average cost of investors that share prices moving average around 20, they tend to get recognized outside the capital, so stock price fall from a short-term shift for the new up-cycle.

After more than poised after the case, even the super-strong class of stocks rose sharply in the fast after the band appeared for the first time as long as the price adjustment will be re-encounter on the 20th line of the offensive, even if it is a short-term behavior Therefore, the stock retreated to 20, often near the line of gold would constitute a good selling points.

Actual example: Moga shares (600,543) is the main food production and wine making industry, listed companies, its largest attraction in the world's ice wine is to emulate the production, not only to fill the gaps in the domestic ice wine was identified as the Diaoyutai State Banquet Wine , and as such was only favored by the first part of the mainstream funds. From January 2007 onwards they've pulled a continuous heavy volume market, especially the weekly listing of K-line trading volume hit a new high since a single week, we can see signs of new money involved in the apparent how. From January 22, 2007 stock price band to break through previous highs, after a rapid decline, when adjusted to 6.51 yuan from stable when stabilized, and on the same day under the shadow disk so as to bring a long line of small Yangxian reported income, while the this time the 20-day moving average share price value of 6.49 yuan, Jin Ju intraday low of difference between two points, we can see when stock prices close to 20, the average cost of less than investors in the market acceptance of how high the stock subsequently rises to reach 20%.

Yinjifazhan (000511) is also true that in the end of January 2007 stock price-volume breakout in late May 2006 has also seen after the high-band down at the just-exposed to 20-day moving average steadied when they appear signs, followed by the Unit the rate of increase to reach 40%.

Summary: When stock prices on an upward cycle, the process of stock price due to some sort of resistance which led to decline in the price dropped to near the 20 line is a good gold selling points. This particular moving average is not just aimed at those who were poised after the outbreak of stocks, the same trend is fit for any, especially some strong Zhuanggu adjusted for each band on the 20th line of contact when you are very good strategic selling points .