Category: Money tips Release Date: 2006-03-21
In the moving average, the U.S. investment experts Genan Wei (jogepsb ganvle) created by the eight rules can be described as the essence of which has always been of average users are all the treasure them as technical analysis, while the moving average line but also because it vividly Dow Jones has played a theory of spirit. Eight in the four rules are used to analyzing the time to buy, four are analyzing time to sell. Overall, the share price below the moving average line, but also an upward trend is to buy time, whereas the average share price line above the line, but also a downward trend, it is time to sell.
First, look at buying time.
Buy one, with an average line goes through all the way down, the gradual shift smooth, and there rise up signs. Do not, the price line has turned up, and since breaking below the moving average line, this is the first buy signal.
Buy 2, stocks began to refer line is still above the moving average line, but showed a sharp downward trend, in the below the moving average line, the suddenly turned around and upward, and since breaking below the moving average line, this is the second to buy signal.
Buy three, and bought two similar, but not below the moving average price lines lines, as long as the moving average is still rising, the former also turn down to l, which is the third buy signal.
Buy 4, the stock line and moving average are on the decline, the problem is stock lines severely down, away from the moving average line, indicating that a rebound just around the corner, this first 4 of many short-term buy signal is very customer-favorite (so-called grab the bottom) However, love can not avoid war, because the trend is still bad, Jiuzhan inevitably stuck.
Ge Nanwei sell the four rules, and to buy four rule is one to one.
Sell one, the moving average line from rising to flat, and has transferred the next trend, but also from the top of the whereabouts of the stock line, below the moving average line, this is the first sell signal.
Sell 2, stock lines and moving average line is very disappointing to fall, when stock line from the bottom up, and broke through the whereabouts of the moving average line is still, after the whereabouts of another U-turn, which is the second sell signal.
Sell 3 sold 2 is similar, the problem is the current rebound in the stock line of slightly more weak and was about to break through the moving average line but unable to break through, this is the third sell signal. Note that sell 3 and buy a different one is the moving average line to buy from or transfer level, and has shown signs, but sold three, with an average decline among the lines Shang Chu.
Sell 4, then the stock had risen massively, while also on the rise far more than the moving average line, there must fall after the boom, so here is the fourth sell signal, in order to prevent unnecessary losses caused by collapse. After long-term use, we found that average turn down to level, and have an upward trend in stock prices break below the average from the average line, and always will remain at the top of the moving average, which is a bull market period; while the other hand, the average line turn was promoted to level, and the subsequent fall in stock prices online side break line from an average of below average, this period is a bear market.
As for the 4 and selling 4 to buy, what is far from the moving average line, when a moderate, which is a deviation from the rate of the study object.
