Category: Money Tips Date: 2007-05-16
When we day moving average of various sizes marked on the chart, connect up, they will have an up and down the curve, which is the well-known moving average.
Many different types of moving average, but in general can be divided into short-, medium-and long-term three kinds. Short-term moving average line is mainly 5 and 10 days. 5 days is 5 days divided by the number 5, find an average, marked on the chart, and then the calculation behind the analogy, and then day by day with the average effect obtained is the average on the 5th
. As the SSE is usually five trading days per week, so 5, also known as contour lines.
5, average rise and fall due to greater volatility and when the image of a very irregular line, no trace could be found, thus the birth of a 10 day average line, this line taken on the 10th as a sample, simple and easy to count, for the investing public for reference and use of the most extensive moving average. It more accurately reflect the average cost of short-term price changes in the situation and trends, can be used as a basis for short-term access.
The second type is the medium-term moving average. The first is on line, sampling for the 24-25 or 26 days, the line allows users to understand the share price one month's average variable cost, for medium-term investment, the effectiveness of the high, particularly in the stock market is not yet quite clear before, can advance show the direction of price changes in the future. Followed by the 30-day moving average line, to take Italy is still very much on the basis of 30 days, but due to the sample, the calculation is simple compared with the former, and finally the quarter line, sampling for 72,73 days or 75 days. Because of its volatility over the short-term moving average line and there is a smooth path to be found, the longer-term moving average line has high sensitivity, thus obvious advantages.
The third category is the long-term moving average line, the first line for half a year, sampling 146 or 150 days, due to a year in two Shanghai-listed companies publish their financial statements, company directors, supervisors and some sources can often obtain this first-hand information, to speculation, investors will be able to be Zuojiao the benefits, but due to a strong speculative Shanghai stock market, investors focus on short-term post profits, and thus results have fought point discount. 200-day moving average line is Genan Wei concentrate on research and experimental moving average system, focused on introduction, but not very common in domestic use. Years of lines, samples of about 255 days is a super-big, fried hand-operation of the stock were the basis for reference.
All types of nothing more than the average of several sampling is too small, line irregular, sampling too, the line is too smooth, no obvious change point, which investors should pay attention.
Edited in the gold-line
