Summary : From the perspective of moving average, it is best to judge the trend of stocks , because from the perspective of trading, only the long trend is the most worthy of our attention and participation. The best way to distinguish the strength of individual stocks under the bull trend is to arrange the short, medium and long moving averages.
When the moving average shows a bullish arrangement, it is the strongest time period for the stock price, because at this time all moving averages form a support and aid in the rise.
Short-term moving averages are arranged above the long-term moving average, which means that short-term buying is more enthusiastic, so stock prices are often easy to rise but difficult to fall.
However, as the stock price continues to rise, the profit-taking orders of low-end buying accumulate more. In addition, there was originally a trapped selling pressure above and the dual selling pressure will form resistance. The stock price is reflected in the stock price to correct more (the rise is too far from deviation), and the stock price will have certain changes, which are divided into several different strengths and weaknesses;
1, The strongest stocks will attack
2. Although the second-strong stocks occasionally fall below the 5-day moving average, they will keep the 10 moving average and rise again after ; the strength of falling below the 5 moving average has no strong force that does not break the 5-day moving average, but as long as the short-term structure is not damaged, the short-term will belong to the strong range and will rise again after the short-term strong consolidation.
3, when the short moving average falls below the 5-day 10-day moving average and then reverses downward, the short-term strong trend ends , the stock price enters a space-biased correction, and the time for sorting or correction will be further extended. At this time, it is necessary to judge the moving average that is biased to the medium term.
When the short-term weakening enters a space-oriented correction, the 20 or 30 moving average area is a focus on. The daily level above the 30 moving average is a more consolidation, and the rising structure can also be retained, but the force of consolidation is weakened compared to the short-term strong consolidation, and the market will enter a volatile upward structure. Until the market fluctuates for a long period of high-end range, the 5 10 30 moving average and even 60 begin to converge again, and the market enters a relatively large-level direction choice.
A complete moving average combination includes three different cycles, short, medium and long, so the strength and weakness of the stock price under the bull trend can be identified through the moving average arrangement.
The strongest stocks will attack along the 5 moving average, and the second strong stocks will rise along the 5-day and 10-day moving averages. When the 5-day and 10-day moving averages are broken, the strong structure of the short-term angle ends. Under the direction selection after the short-term bull and bear game results, the support of the medium-term moving average will be tested.
