Finding bull stocks through the moving average

As mentioned above, we can discover the top and bottom of a stock through the form of a K-line, and use different forms of a K-line to get the corresponding sales reference, operations through the "k" line are based on the strength, outcome, and investor psychology of the trading game between the two sides in the market. The same as the K-line technology, there is also a moving average. Many technical analysis schools can also separate the analysis system, but this book does not carry out a huge research on the moving average, here, we mainly use the moving average to reflect the "cost" principle to capture band opportunities.

The moving average is short for moving average. It is a general average of the closing price of a certain period of time in the past. For example, the 10-day moving average is to add the closing price of the past 10 trading days and divide the value by 10. Then we pushed forward 10 trading days yesterday, calculated another value in the same way, and so on, and connected these values to form a normal moving average. So the moving average is the average closing price of a relatively period of time, reflecting the average transaction price. The 5-day moving average reflects the traders' chip costs in the last five days, and the 10-day moving average reflects the traders' chip costs in the last 10 days ......

From a technical point of view, the moving average is a factor that affects the psychological price and thinking of technical analysts. Because the moving average reflects the traders' costs, it will significantly support and suppress the stock price. When the stock price shows a significant downward trend, the pressure to sell will be lifted by the holders of the regional cost in the corresponding phase at each moving average, thus limiting the stock price rebound; in the rising trend, when the stock price falls back to different moving averages, it will also lead to replenishment due to the cost areas close to these investors. However, once the price falls below the support level, in addition, it will cut the meat and sell it to the target investors. As a whole, the average will play a stronger role in suppressing the stock price.

To search for bull stocks through the moving average, you need to find the stocks that support the strongest, which is very simple. Only with strong support can investors have strong enough confidence,However, the stock price can only show sufficient strength on multiple moving averages, including short-term moving average, medium-term moving average, and long-term moving average. At the same time, such a stock also means that there is almost no disk.Investors are very curious about their psychology, so they will be afraid and worried about the same level. However, if they make a profit, the greedy heart will make most people "look at the top of the line" and generate a sense of out-of-the-box sales.

when multiple moving averages are in the upward direction and arranged in the ascending order of time periods, they are called long averages. , such a moving average system provides strong support for stock prices. When the stock price is above this moving average system, the popularity of multiple heads is high. The main force will attract a large number of investors optimistic about the market to follow suit as long as a small amount of money is increased, when new funds flow in, the old funds are in the profit Status and the chips are locked well, so the stock price can easily rise. This is an alternative method to capture the band stock through a long average, and does not require too many technical indicators, as long as the market is not bad, stocks with long averages are always more profitable than stocks with long averages.