fell for a period of time, the 5-day moving average , 10-day moving average and 30-day moving average will definitely be short arrangement , that is, the 5-day moving average is at the bottom, and the top is the 10-day moving average, and the top is the 30-day moving average. At this time, if the stock price rebounds, the 5-day moving average will turn upward. If both the 5-day moving average and the 10-day moving average can successfully cross the 30-day moving average, the cross formed by these three moving averages will become gold cross . The appearance of moving average gold cross pattern often indicates that the stock price will continue to rise in the later stage, and investors can buy stocks.
is described below using quadrupole biological as an example, as shown in Figure 1.
Figure 1 Sihuan Bio (000518) -day K-line trend chart
In early January 2011, Sihuan Bio's stock price fell all the way, with the 5-day moving average, 10-day moving average and 30-day moving average becoming short-selling arrangements. On January 21, the stock price bottomed out and rebounded, and then the 5-day moving average crossed the 10-day moving average and the 30-day moving average upward, driving the 10-day moving average upward and crossed the 30-day moving average. As a result, the moving average gold cross pattern is formed, indicating that the stock price will rise further in the later period.
At the same time, after the 5-day moving average crosses the 10-day moving average and the 30-day moving average, it turns downward and moves closer to the 10-day moving average. At the position close to the 10-day moving average, it bounces up under the support of the 10-day moving average. The 5-day moving average, 10-day moving average and 30-day moving average form a bullish arrangement (that is, the 5-day moving average is at the top, the 10-day moving average is second, and the 30-day moving average is at the bottom). Therefore, the classic "old duck head" pattern in the moving average is formed. It indicates that the stock price will rise sharply in the future.
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(This information is for reference only and does not constitute investment advice. It should be evaluated carefully when investing)
Edit: gqm
