Double high and five-day line are two conditions, which means that the highest point of the day is higher than the highest point of the previous trading day, and the lowest point of the day is higher than the lowest point of the previous trading day. This is called the double high five-day line, which means that the closing price of the day is above the five-day line, and even the lowest point is above the five-day line. The 5-day moving average is the weighted average price of the closing price of 5 trading days. Connecting these points calculated every day constitutes the moving average.
The 5-day moving average is the weighted average price of the closing price of five trading days. Connecting these points calculated every day constitutes a moving average.
The 5-day moving average is a stock market term, that is, the average transaction price or index of a stock for 5 days, which corresponds to the 5-day moving average of the stock price and the 5-day moving average of the index (5MA). The moving average index is actually the abbreviation of moving average index.
When the stock rises, the stronger trend generally goes up along the 5-day moving average (the weaker trend goes up along the 10 or 20-day moving average). When the stock price rises away from the 5-day moving average, it will be adjusted back, and it is a good buying opportunity for investors to adjust back to the 5-day moving average.
Tips for buying the 5-day moving average:
1, the stock price is too far away from the 5-day moving average and too high above the 5-day moving average, that is, the 5-day deviation rate is too large, which is a short-term selling opportunity. How much deviation rate can be sold depends on the strength and size of individual stocks. Generally, the stock price is 7%- 15% higher than the 5-day moving average, which is too high for investors to sell. If it is a bear market, the average share price is 7%- 15% lower than the 5-day moving average, which is suitable for short-term buying.
2. If the stock price falls below the 5-day moving average, it is suitable for buying when it starts again. In the process of rising, slow bull stocks often do not break the 5-day moving average or 10 moving average most of the time. As long as it is not broken, you can continue to hold positions in combination with the general trend and the fundamentals of individual stocks.
3. If the stock price falls below the 5-day line and cannot rush to the 5-day line, investors should beware of chasing the quilt cover and pay attention to selling on rallies. If it is a bear market, if the stock price rises above the 5-day line and fails to break through the 5-day line callback, or the 5-day line falls below but stops falling, you need to beware of bargain hunting and repurchase.
4. If the stock price effectively falls below the 5-day line, it will generally fall to the 10 line or the 20-day line. If it falls to 10 and 20, and the stock price restarts, you can make up the chips that have been sold at a high level in the short term as appropriate to avoid being short. If it is a bear market, the stock price effectively rises above the 5-day line, and generally rises to the 10 line or the 20-day line.