Sunday, March 9, 2008

Move average line

The most basic method of tendency analysis is that the share price that forms on the American investment rule foundation of famous analyst shelf orchid Bill moves the average method of line analysis share price tendency.
The share price claimed moves average line France, utilize the share price average of move make share price change situation submit the method that curve melts. Since use it, the change for share price carries out long-term analysis and forecast. It is to omit some contingencies in series in time sequence analysis to move average line law or the fluctuation of periodicity, take in proper order a series of average gotten by certain several calculation, form a change to rise and fall less new series curve, in order to show the long-term development tendency of share price average. Process is its calculation: Calculate the average of time series initial N item first, then preceding delete is a, back adds a average of making second N of calculation , and then makes the average of back with same method calculation. When asking for average, it will be starting point with certain a day , takes a time before this to calculate period, calculate this duration everyday the average of closing price of share price, this average for starting point the share price of day. Still take same day number again, from second day , make average finally as the share price of second day. If make the move of 5th with the beginning of March 5, average line and the share price average of March 5 should be for March 2, is to the average of the share price closing price of March 6 ( the 5th of here should be 5 trades day), so as this kind of push , follow calculation with day passing, mark the average of equal time interval constantly , depict curve, this is that share price moves average line.
With move, average line method and its benefit are to have reduced the influence of contingency factor to curve in a time , make curve be smooth as changing , investor understands curve change tendency easily. Usually, when moving average line, is going up , share price falls below average line, this is share price tendency the signal that will be declining; Otherwise, it is the prelude of share price rising. Move forms in average as line with the move average of 5 days, 10 days and 30 days, but different investment tactful investor may alter this parameter to suit the number value used by oneself, is matching so as between not at the same time K line, in order to offer more accurate business opportunity for self.
Moving average line divide into single line and two-wire according to quantity to intersect , 3 lines intersects , according to calculation method, minute is simple , add right and index. It is more complex to move average line in the expression in big quotations than other is on good terms with meticulous operating system, and it is simple and convenient. When closing price is high and move average line, you may march into the arena to buy to enter , sell otherwise. Single move average line is unitary because of sampling data, sometimes, meeting sends wrong signal frequently. To reduce fault , strengthen the accuracy of signal, people have put out 3 kinds on practice foundation to move average group , join application. We move short period, mid-term and 3 kinds of long-term this average group suits , match again with different K line, it is with more meaning that this moves towards for judgment tendency and the favorable opportunity of assurance business.
Is moving the combination of average line , when short period in line surmounts rapidly long-term line to top move, this is buy in signal; When K line is located in most top and together short mid-term line stands side by side , just each move average line submits uptrend , this shows that quotations is still in uptrend, but hold storehouse continuously; When after rising quotations a continued time, the line of short period from stagnation the high some appearance of state downtrend, it is soft to show share price to begin to go, this is the time of selling stock; When short period line since in Gao Wei breaks through in proper order downward long-term line , this is final check inventory opportunity; K line and the average line of short period in length according to order from top to bottom stand side by side , and when each line shows decrease state , this shows , is typical disadvantageous quotations; When after disadvantageous quotations pretty a continued period, the line of short period turns from the lowest point, is rising trend, this is the very good opportunity of copying base.
Is making up line , move if share price continued decrease turns after the lowest point for rising in, is short right now in proper order respectively long-term line, them arrange sequentially also change in proper order. First, it is the line breakthrough mid-term line of short period, cross long-term line again to be on most top, hereafter, mid-term line breakthrough breaks through on long-term line, is gold intersect, abbreviation gold is forked , this point may confirm that quotations will enter rising period. This is so called and bull to arrange sequentially , is typical rising quotations. Otherwise, share price goes up to expensive district about wander , then changes direction to be declining , in along with the passing of time, in short, long-term line is also down , breaks through step by step downward to intersect , long-term line the point that intersects is death intersect , abbreviate dead fork, the end of this meaning rising quotations. Moving average line arrange sequentially right now for nominal.
In the combination application that moves average line , investor should set corresponding parameter according to own actual operating strategy, must live to study work use , do not want no matter in do is the average group that suits own operating strategy short is long term, suit with the average group, of 30th, of 10th of 5th, investor may explore by oneself to suit.
For any move average line system - - - - - - no matter is simple , add right still denote number, a very important problem is: Do you move average line number to use how many days? , as well as each kind of different merchandise, is not have specific day number? This level advantage. Ke-Luo has introduced 1978 for us Frank Hochheimei when in" merchandise yearbook" the article " computer can help you to do futures trading " of publication the very outstanding research results made. Frank test error from 1970 - the 13 kinds in 1976 the goods kind of the same period, each kind of count with very extensive average day. From 3 days to 70 days, do not wait for test , reach following result:

The unitary move of the best average

Merchandise best day several mean
The cocoa index 87959
The corn simple 24646
The sugar simple 270402
The cotton simple 68685
The silver simple 42920
The copper simple 165143
The bean simple 222195
Beans Po 41 days adds
The 34 days of soya oil
Pig Nan the simple 97925
The simple 35959 0.291
The wheat simple 65806
The three-ply board simple

It is best

Count in
Silver 13
Pig Nan 25
Corn 12 and
Cocoa 14
Bean 20 and
Copper 17
Sugar 6

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