What is the moving average? What do you think?

Whether experienced stock investors or newcomers to the stock market, they often use the moving average when selecting stocks, buying and selling. Some investors even believe that "as long as you study the moving average thoroughly, you can become a super millionaire". Now let's talk about this simple and practical moving average indicator.

Moving Average, also known as Moving AverageMABy the renowned American investment expert Granville1962Proposed in. The moving average is the use of statistical analysis to measure the prices of securities over a certain period of time(index)Average and connect the average values at different times to form a moving average. The calculation formula isNDaily moving average=NSum of daily closing prices/N。

In the stock market, the moving average commonly used by investors is5Days10Days30Days60Days120Tianhe240God, this6Species. Dragon Weekly stated that among them5Tianhe10The daily moving average is called a daily moving average indicator and belongs to the short-term category;30Tianhe60The daily moving average is called a quarterly moving average indicator and belongs to the medium-term category;120Tianhe240The daily moving average is called the annual moving average indicator and belongs to the long-term category. Investors with different investment strategies need to refer to corresponding moving average indicators, for example, short-term investors should choose the daily moving average as a reference indicator.

The reason why the moving average can be widely used in the stock market with numerous indicators is closely related to its advantages. It can reflect the trend of price trends, is easy to understand, and allows investors to intuitively understand the changes in stock prices, thereby helping stock investors confirm existing trends, judge upcoming trends, and discover trends that are about to reverse due to excessive development.

The moving average also has its own limitations. If investors only use the moving average as a reference indicator when investing in stocks, they cannot make accurate buying and selling decisions;When the stock market is in a state of adjustment, the moving average will frequently reflect buying and selling signals, making investors easily misled;Due to the fact that the moving average is the average of stock prices, it is difficult for investors to grasp the low or high points of prices. Therefore, the moving average is generally used in conjunction with other technical indicators.

Some new investors have raised questions, where can I see the data of these moving averages?Dragon Weekly stated that distribution charts of daily, quarterly, and annual averages can be seen in some stock software such as Linlong Software. We are researchingKWhen drawing the line, you can see thatKOn the line diagram, there are not onlyKLines, as well as lines of blue, yellow, green, and other colors running through them, are called moving averagesMA5=85.33It refers to being in the5The average price of stocks within trading days is85.33Yuan,MA5=85.33Color and5The color of the daily moving average is the same.

Nowadays, the moving average has become the most basic indicator for observing and analyzing stock price changes. Whether using technical indicators or analyzing the stock market through fundamentals and news, investors use the moving average as a reference tool to determine the direction of trends.