1 thought on “What does the 5 -day moving average mean”

  1. 5 -day moving average (attack line): The stock price rose broke through the attack line, and it also showed an upward trend. In the short term, it will be viewed. In the same way, if the 5 -day moving average falls below the moving average, it will be short in the short term.
    The moving average is an important technical indicator commonly used by investors. It is the sum of the closing price of a certain period of time to remove the average line obtained by this cycle. For example, in this week, only 2 days are not the trading day. The closing price of 5 trading days is added with the average value calculated by 5, and the calculation method of the 10th and 20th is the same.
    The expansion information:
    . What are the moving average, different colors
    The parameters of the basis are different, and the effect and response are different. Common parameters are 5 days, 10th, 20th, 30th, 60th, 120th, and 250th. Commonly used colors include white (5 -day line), yellow (10 -day line), purple (20 -day line), green (30 -day line), gray (60 -day line), blue (120 -day line), orange (250 (250) (250 (250) On the day), of course, the color is not fixed, and the shareholders can set up the color arbitrarily, as long as they like it.
    . Simple application of moving average
    1. Which
    The content reflected by the moving average during analysis is the average price and trend within a time interval. The ground is presented to us. Each line contains a different role and significance. Regarding the connection between them, let me talk about it next
    (1) The 5th moving average (attack line): The stock price rises and breaks through the attack line , And also show a rise, which will be bullish in the short term. In the same way, if the 5 -day moving average falls below the moving average, it will be short in the short term.
    (2) The 10th moving average (quotation line): When the trading line shows a continuous upward attack state in the disk, the stock price breaks through the trading line, indicating that the bandic midline rises, and the opposite declines.
    (3) 20 -day moving average (auxiliary line): The role is to assist in the 10 -day moving average, promote and correct the efforts and trends of price operation, and stabilize the direction of price trend operation. When the auxiliary line is continuously upward in the market, when the price breaks through the auxiliary line, this shows that the band -to -midline market has begun to see more. Refer to the mid -term movement trend of the stock price, and the lifeline has a strong pressure and supporting effect. The same is true in the disk. The reversal trend, guide the large -scale band level to run in the trend in advance. The basic main force attaches great importance to this moving average, and he plays a very important role in the mid -term movement trend of the stock price.
    (6) 120 -day moving average (Trend Line): The role is still the same, that is, the long -term reversal trend of the price is indicated, and guidance and guidance are required. Essence If the trend line is below the stock price, the reversal should not happen in a short period of time, and it will not reverse in more than ten days.
    (7) 250 -day moving average (annual line): If you want to have relevant references, just see the moving average. The company's basic situation and performance can be reacted through it.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
Scroll to Top