The moving average is one of the most commonly used analysis indicators, which reflects the change of the average cost of the market in the past period of time. The moving average system formed by the moving average and multiple moving averages can provide a basis for judging the market trend, and can also play the role of support and resistance. First, use the moving average to speculate on short-term. The stock market trades five days a week and four weeks in January, so in my opinion, January is a short term. When we change the moving average parameters in the K-line to 10, 20 and 30 days, we will find many secrets in the moving average. We follow a stock. When it swings or falls, if the 10 moving average first crosses the 20-day moving average and then the 20-day moving average crosses the 30-day moving average, a triangle is formed between the three lines, which is called "trust". According to the stability principle of triangle, it shows that the stock has been basically stable and will not fall again, which is a good opportunity to buy. After stabilization, if the three lines are arranged in a long position, that is, the 10 moving average is at the top, the 20-day moving average is in the middle, and the 30-day moving average is below, it means that the stock has entered a short-term upward channel, otherwise it is a downward channel. In the ascending channel, there must be effective coordination of trading volume. If the volume of transactions increases gradually or suddenly, it means that the stock has entered the pull-up stage and should intervene in time. If the trading volume is obviously insufficient or the volume can suddenly disappear, it may be bear trap or banker's band to wash dishes, so it is best to take a wait-and-see attitude. Of course, the short-term combination has 3, 6, 9, 5, 10, 15 days, and the usage is the same, depending on the market. If it is a bull market, use 10, 20, and 30-day moving averages; If it is a consolidation market or a bear market, use 3, 5. But if the three lines are used together, our winning rate will be even greater. Second, how to use the moving average to judge the increase of stocks. As mentioned above, if the three moving averages of a stock are arranged in long positions, then the stock is in the rising channel, which is the focus of our attention. So how to judge how high the stock can rise, which requires us to combine the three moving averages. First, take the 369 line as the basic line, find the stocks with long positions, and then use the 5 15 line to judge. If the conditions are met, finally, we use the line 1030 to make the final selection. When the 1030 line forms a "support", if the trend of the three lines is upward (generally there will be a daily limit), then the stock must rise sharply in the near future, and we should intervene in time. If the stock price falls into a trough, and the trends of lines 369, 5 15 and 1030 are all upward, then the stock will rise in time. If it is "supported" into a horizontal long position, then the rising speed of the stock will be very slow; If the three lines intersect at the bottom and become a "fork support", then the stock price at that time is the lowest price before the stock rises, indicating that the banker has completed the whole set, leaving only the rise; If the fork rest of line 369 and the fork rest of line 5 15 appear on the same day, then the next day is the start date of the stock market (for example, Fudan Hua Fu in February 2007, 15, Li He in August 2007). Then, whether it is high or low, with the continuous enlargement of trading volume, when various moving average indicators meet the requirements and are arranged in a long position, if the distance between the three lines is even, third, the application of medium and long-term moving averages. Choosing a medium-and long-term investment, the most important thing is to choose an excellent enterprise. Secondly, in order to get more profits, the most important thing is to ensure that the stock price is above the 60-day moving average. 1, K-line, also known as candle chart, was first used in Japanese rice market for a long time to record the price changes of rice, and then it was popularized and applied in global securities and futures markets. It consists of four elements: opening price, closing price, highest price and lowest price. Usually draw a long box with the opening price and closing price as the upper and lower edges, and the higher of the two prices is at the top. If the closing price is lower than the opening price, the long box is painted black, which is called the negative line; If the closing price is higher than the opening price, the long box is painted red, which is called the positive line. The part between the closing price and the opening price in the long box is called "entity". The connection between the highest price and the upper edge of the "entity" is called the "upper shadow line"; The line between the lowest price and the lower edge of the "entity" is called the "shadow line". If the four elements of K-line refer to the opening price, closing price, highest price and lowest price in a trading day, it is called "daily K-line"; If it refers to the opening price, closing price, highest price and lowest price in a week or a month, it is called "weekly K line" or "monthly K line" respectively, and there are also 5 minutes, 15 minutes, 30 minutes, 60 minutes K line or seasonal K line, annual K line, etc. The K-line diagram we see now is automatically generated by computer software, and it is no longer necessary to draw by hand. With time as the abscissa and price as the ordinate, the price chart drawn on the basis of multiple "monthly k-lines" is called "monthly chart", the price chart drawn on the basis of multiple "weekly k-lines" is called "weekly chart" and the price chart drawn on the basis of multiple "daily k-lines" is called "daily chart". For each market index, single stock or commodity futures or stock index futures, any trading variety can generate its own monthly chart, weekly chart and daily chart through the corresponding watch software. Trend tracking is to track the price trend of target varieties at three time levels: monthly chart, weekly chart and daily chart. That is to say, the monthly chart is the chart with the longest time period to be tracked and studied, the daily chart is the chart with the shortest time period to be tracked and studied, and the time period of the weekly chart is in between. I think these three charts are enough, and others, such as 5 minutes, 15 minutes, 30 minutes, 60 minutes K-line chart, seasonal chart and annual chart, are unnecessary. Because trend-following traders stick to a famous saying: "It is fatal for me to try to grab in and grab out without paying attention to big fluctuations. No one can catch all the ups and downs. In a bull market, all you do is buy and hold until you believe that the bull market is coming to an end ... big fluctuations can make you a lot of money. " There is a kind of "one-day liquidation" type of "intraday trading", which is simply "holding positions for no more than overnight", that is, the ultra-short-term operation of "grabbing in and grabbing out" based on the K-line chart of 5 minutes and 15 minutes. To be honest, I can't understand this practice, because in the eyes of such traders, the word "trend" doesn't seem to be an objective existence at all. I am currently in the paradigm of "trend tracking", which is the most suitable paradigm for me from my research and actual combat for more than ten years, so I can't understand this paradigm that is absolutely opposite to my paradigm. There is also a class of traders who relish telling their own operation stories according to quarterly and annual charts and take the opportunity to show off their rare "grand vision" and "amazing patience". In my opinion, although I have listed the daily chart, weekly chart and monthly chart here, in my mind, the daily chart is the most important and noteworthy core goal. Weekly charts and monthly charts only play an auxiliary role in the study of daily charts, and I will explain the specific reasons further when I have the opportunity. Because the longer the time period of the chart, the slower it will be. The monthly chart is enough to describe the macro trend, so just as I can't understand the necessity of "intraday trading", I can't understand the significance of analyzing quarterly charts or annual charts at all. There is a monograph on K-line theory. Because this book is not a basic reading, it will not be described in detail here. Here I recommend the book Decryption of Banker's Operation Formula, a monograph on K-line theory co-authored by Li Minghe and Li Menglong, for readers' reference. Beginners must read at least three monographs on K-line theory to understand K-line diagram. I must emphasize that the core task of understanding K-line combination is to find the comparison of long and short forces, and then prove the trend. Even if it is the same K-line combination, they appear in different positions of the moving average, and their meanings are different, even diametrically opposite. In short, although all K-line theories should start with "shape", the most important thing to judge K-line combination is to understand its "spirit" rather than "shape". Readers should first study K-line theory and moving average theory respectively, and then study their morphological and positional relationships. This technology is the most practical and difficult part in the theory of securities technical analysis. Traders need to work hard at least 10 years to compare with cg animation while reading books, because the black-and-white illustrations in books and the red-and-green charts in computer software have completely different stimuli to people's eyes and brains and the memories caused by them. So you have to read the illustrations in the book carefully on the computer to completely simulate the trend at that time. Basically, mastering this technology is to apply the old saying: the master leads the door, and the practice depends on the individual. Without a master, you have to learn by yourself completely through hard work. Without perseverance and research spirit, it will never be possible to master this technology, and no matter how clever a teacher is, there is nothing he can do. Moving average moving average refers to the arithmetic average of the closing price (or index closing point) of a target stock in the last n days. The calculation method is: always divide the sum of the closing prices of the last n days by n as the data of the day; After the first initial data is calculated, it goes forward day by day, and every time a new closing price is added in the average array, the n+ 1 th closing price from the back to the front is eliminated (for the sake of understanding, I will call it "taking new ideas"); Then divide the new total by n to get the data of the new day, and so on. The formula is: MA=(C 1+C2+C3+…+Cn)/N, where c is the closing price of a certain day and n is the moving average period or parameter. If the moving average parameters are set to 5/10/20/60/120/240, the moving average lines of 5,10, 20, 60,120 and 240 days will be obtained respectively, which are reflected in the daily chart as six. If the weekly K-line is used to replace the daily K-line and the weekly closing price is used to replace the daily closing price, and then the moving average parameters are set to 4/8/ 12/24/48 respectively, the weekly moving averages of 4, 8, 12, 24 and 48 are obtained respectively, which are embodied in the weekly chart as five weekly moving averages, collectively referred to as "weekly moving averages". If the daily K-line is replaced by the monthly K-line, and the daily closing price is replaced by the monthly closing price, and the moving average parameters are set to 4/6/ 12/ respectively, the monthly moving averages of April, June and 12 are obtained respectively, which are three monthly moving averages on the monthly chart, collectively referred to as "monthly moving average line family". Like the K-line chart, what we see on the computer today, regardless of the family of monthly, weekly and daily average, is automatically generated by the computer, and manual calculation and drawing are no longer needed, which saves a lot of time and energy compared with the predecessors. The moving average is a great invention of predecessors, which provides a shortcut for observing the price trend. For those traders who can't master the K-line theory, choosing one or two simple moving averages, combined with firm discipline, can still profit from this market. The so-called trend tracking is essentially tracking the movement of the moving average family. I almost never draw a trend line. I just use the moving average to directly replace the trend line. Because this book is not a basic reading, there is no special introduction to moving average technology, and beginners must find corresponding monographs to learn. Here, I recommend the book "Stock Operation" written by Teacher Zhang of Taiwan Province, which makes a systematic introduction to the EMA for novice reference. 3. The relationship between the shape and position of the K-line and the moving average. There is no reference book in this field in the world; However, the series "Short-term is Silver" in Tang Nengtong has made a useful exploration in this respect. Like many celebrities, Tang has many admirers, but many people call him a liar, Darkmouth and so on. I am not a disciple of Tang, but allow me to be fair. Tang has made a pioneering contribution in the field of domestic technical analysis. Many popular images he invented, such as "water hibiscus", "decapitated hay cutter" and "cold and warm air belt", have become classics because they are easy to understand and unforgettable, whether you like it or not. However, he is also a strong man who is good at packaging and selling himself. It is also an indisputable fact that there are a lot of advertisements in his books. As long as you buy his first book, you can buy all the first to eighth volumes of his "Short Line is Silver" series at one go, and you can buy as many books as he writes. This is personal charm. One thing is certain, no matter how profound Tang's theory is, at most two books are enough to express it clearly, but he wrote eight books in one breath, so at least 75% of his works are dross. Although the flaws don't cover up Yu, it is difficult for beginners to distinguish clearly from his books which are beneficial, useless and even harmful. Facing a rebound in the short term. The same is true for judging the decline, the medium-term moving average. If it is in the shutdown state. I hope I can help you when the K-line goes up or down. Similarly, the long-term moving average at the top often plays the role of support and resistance, and the short-term moving average is generally at the top. If the K-line falls below the support, it will face short-term cash pressure and long-term costs. It is much more convenient to cross the 10 moving average on the 5-day moving average: we can cross the moving average system and raise the long-term moving average, and the long-term moving average below reflects the long-term upward trend. If there is pressure, it shows a consolidation pattern, and the moving average will have the role of support or resistance.