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Data:2009-12-12 2:34
1. Average nature
2. A strong stock average characteristics of the system
1. Average nature
Analysis of the moving average is to choose the stocks that another effective way to dark horse stock. Advocate the use of moving average line, believe that the majority of small daily transactions, the volatility is just one important trends in the episode, if the over-emphasis on these small fluctuations, but the main trends and changes in stock prices will be ignored. Thus, they believe that analysis of stock price movements should be even broader vision. Using average approach, focusing on the trend of price changes. Number of samples in general average of 3 days, 7 days, 10 days and 30 days, and so on, and even long-term average sampling time of up to 150 days or 250 days.
Average characteristics:
â‘?Characteristics of the trend
Average stock price movement can be expressed the basic trend.
â‘?stable characteristics of
Day moving average line did not like the ups and downs, but ups and downs fairly steady. Upward moving average is often slowly upward, downward, the average line will slowly down movement, the movement to change the average trend is very difficult.
â‘?safety features
Is usually more long-term average line, the more security features can be shown that the moving average will not easily go up to down, must wait for the city of potential became clear, the average line will really change direction, while the regular market price began to fall at the beginning , moving average is up, wait until the price down significantly influence only when they see the moving average decline. This is the most prominent feature of the moving average line. The more short-term average, security worse, the more long-term average line, the better the security, but also makes the average thus unresponsive.
â‘?have implications for the characteristics of
Stock price up from an average line below after the break, with an average line has begun to the top of the movement can be seen as bullish support line, price fell back to average near the time when the forces that support will naturally occur. Short-term average moving up fast, medium and long term moving average moving up slowly, but they said the amount of time the average holding period of increased costs, the buyer power if it is still stronger than the seller, then, the stock dropped back each time near the average is to buy time, which is the average line fueled the function disappeared, the stock will return to below average, then might the trend has changed.
â‘?help or the characteristics of
Under the direction of stock prices from an average line break, the average is also the beginning to the bottom line of movement, became a short time average resistance line, rebounded to an average market price for each line in the vicinity, the naturally occurring resistance. Therefore, in average down movement, whenever the stock rebounded to an average line in the vicinity is the time to sell, the average line at this time with the help or role. If the market is slowing down, with an average line started slowing down, this time again with the average share price if the close, there may be upward moving average began to break up the rally, this time to help the average line or weakened.
2. A strong stock average characteristics of the system
Moving average is the trend line, the stock for some time, along a certain track to a certain direction, in fact, stock prices often close to the orbital motion which, in the trend has not changed, do not have to sell their shares. The steep trend line the more stocks, the trend is also stronger. Any short-term moving average up more steep angle of the stock, reflecting the stronger the trend, it should be included in the priority option of retaining the system must be of such stock average was arranged long way, and the analysis of each stock price correction in an uptrend line The elevation is very important to stock picking analysis, once the strong buying stocks they think there must be pegged to its upward trend, to see if it continues to remain strong. As long as one has been established to maintain the upward trend is not destroyed, have expressed their holdings are safe, a new bid to continue entering the market, but investors must pay special attention that the stock price on K-line when the trend line for each touch , the stock has done in the end the response is to obtain support or below, especially when accompanied by a breakthrough increase in volume.
Changes in the trend, investors should be especially vigilant because it is long-short power change will not ignore this change, when the trend changes in the signal or even reverse pattern occurs, we should be time to swap. Therefore, the investor will have to choose a strong stock, but by the need to avoid too much choice deviate from the rates of individual stocks, because these stocks while the momentum strong, but the rally is in need of excessive callback order better to wait for it to drop back to near average re-intervention.