Of course, although the market stood on the long-lost 6O daily moving average yesterday, the market is more concerned about whether it will peak in the short term and whether the results of this round of rebound will be swallowed up.

After all, there were many stocks that followed the market and dived yesterday, and created a recent volume, such as Baotou Iron and Steel Rare Earth's diving range after 2 o'clock yesterday was close to 7%, which made many people worry that the market and individual stocks will have a trend of sky-high prices.

"You've said so much, what's the conclusion?" Listening to Ding Xu talk endlessly for five or six minutes, Tao Xia smiled bitterly.

"My conclusion is that the recovery of the 6o daily line can not only attract technical entries, but also give the market great confidence and encouragement. As long as you stand on the 6o daily line, go up again, and break the cycle of rebounding highs wave by wave since this round of bear market, the market's confidence in doing long will be boosted, and funds will pour into the stock market again, and the bull market can really begin! Ding Xu said excitedly.

"Boss, I'm about to go to class!" Tao Xia muttered with a smile.

Ding Xu didn't seem to hear what Tao Xia was saying at all, and still said excitedly: "Today is a critical day, if you can continue to stand above the 6o daily line today, and you can maintain a strong three-day next week, then the bull market is likely to really begin." Xia Xia, remember to watch the market today, because from today, we are witnessing the opening of a new round of bull market together! ”

Hearing the last sentence, Tao Xia, who was originally a little impatient, suddenly became a little subtle.

This seems to be the first time Ding Xu has said "we......

Why is it that Ding Xu is talking about the boring numbers in the stock market, what 6o daily moving averages and the like, but he suddenly has a slightly sweet feeling in his heart?

"Tao Xia. Why don't you speak? "At this time. Ding Xu also realized that he was talking too much. Tao Xia said too little, and quickly asked, "Are you listening carefully, are you not distracted?" Hey, do you understand the meaning of the 6o daily moving average? ”

"What's there to understand?" Tao Xia bit his lip, and for some reason, he suddenly became a little annoyed. "What's so great about the 6O daily moving average, there was a 55-day moving average for someone in the group yesterday, I think it's very good, at least other retail investors rarely use it, it's more flexible, it's stronger than your 6O daily moving average!" ”

"Tao Xia, your view is not right! Using the moving average is not like you women buying clothes, the more novelty the better! "When it comes to this kind of technical stuff, Ding Xu becomes very serious. It's boring.

Ding Xu knows that there are some technical people who like to set the moving average to a time period such as 7 days, 14 days, and 21 days. This is mainly due to the fact that 7 is the number that Gann values the most, so most of these time periods are taken as multiples of 7. In addition, the 7-day moving average is also roughly equivalent to the 3oma moving average of 6o minutes, which can be used as a short-term term.

There are also people who are accustomed to using the 5th, 13th, 24th, 34th, 55th, 89th, 12o, 25o moving averages, and think that this time period is more effective than the commonly used 5, 1o, 2o, 3o, 6o, 12o, 25o daily moving averages, which can effectively prevent the dealer from cheating the line.

There are also people who use the parameters 5, 12, 34, 5o, and 75 as the time period of the weekly candlestick, which is considered more effective than the default parameters in the software.

The more well-known methods for setting the parameters of the moving average system include "Fibonacci sequence", "135 strategy" and so on. For example, in the use of large parameters, 55, 89, 144, 233 in Fibonacci numbers and other numbers, such as 72, 113, 187, 288, 384, 576, 748 and other numbers, will be used.

Because they believe that these large parameters mathematically contain the principle of time window and golden section, and are also the accumulation of the average cost and trading volume of the market in a large time period, it is normal market behavior for the market or individual stock trend to cross, pause or turn at these large moving averages, and the pressure and support of the moving average of large parameters are also generated. This also provides a basis for investors to buy the dip and sell the dip and sell the bargain.

Moreover, the above parameters are valid for monthly, weekly, daily, 6o, 3o, 15, and 5-minute moving average settings, which further proves the effectiveness of this magic number.

When Ding Xu communicated with his friends in the stock group, he also had the problem of zài. Some people say that the 13-day moving average is very important, others say that the 72-day moving average should not be underestimated, and some people say that chasing strong stocks should not look at the 5-day line, but look at the 3-day moving average...... In short, there are many kinds of things, and there is no consensus.

And sometimes when watching the news of stock speculators on the Internet, they will also exaggerate the role of some cold moving averages, and those stock critics or traders like to put forward some new moving average parameters in order to attract attention, and try to exaggerate the role of the moving average.

In this way, many retail investors also like to explore some unconventional moving average parameters, and hope to use this to cash bull stocks.

In fact, in Ding Xu's view, whether it is necessary to modify the parameters of the moving average, we must first understand the meaning of the moving average.

The so-called moving average refers to the moving average price, for example, the 5-day moving average is the average of the stock price of the last 5 days. Its significance in operation lies in the fact that most participants in the market can see the situation of the moving average, and when the stock price reaches near the important commonly used moving average, most of the participants will make the same judgment and reach a consensus, thus leading to the change of the original behavior.

For example, in the big bull market of 2oo5-2oo7, the market has been effectively supported at the 2O daily moving average for many times, and once it falls below, it will soon recover and hit a new high.

And some bull stocks are also like this, basically as long as the stock price falls back to near the 2O daily moving average, it will rise strongly again and quickly rise.

What is the force that acts as support at the 2o daily moving average? In fact, it is a kind of psychological resonance of stockholders.

When the stock price reaches near the important moving average, some bears in the market will think that "it has fallen to an important moving average, there should be support, I will wait and see for a while, and I will not sell"; And some bulls in the market, the reaction at this time is that "the 2O daily moving average has important support, and it will rebound after falling here many times in the past, so you can consider entering the market to buy the bottom".

Under the effect of this psychological resonance, the overall lì of the short side will be weakened, and the overall lì of the long side will increase, resulting in a rebound.

Once the market or individual stocks fall below the 2O daily moving average, the bears will continue to be bearish, and the bulls will often turn from long to short, thinking that the support has been broken and cannot enter the market, and will choose to sell stocks. This combined force will cause the stock price to fall even more.

And when the stock price begins to rebound and is close to the moving average that originally fell below, because that moving average represents the average holding cost for a certain period of time, it will also make retail investors who want to quickly unbundle sell one after another, leading to a sharp increase in selling pressure. At the same time, investors who were originally bearish also have a certain consensus on the pressure of the moving average, and often sell instead of selling at this time, which further increases the selling pressure.

In other words, when the broad market index or stock price is close to the important moving average, some long and short sides in the market are likely to reach a psychological consensus, which will lead to changes in their own behavior and play a role in supporting or stressing the stock price and index.

Specifically, when a stock price or index falls above the moving average, the moving average will have a supporting effect; When the stock price rises below the moving average, the moving average will act as a pressure.

This is also the reason why Ding Xu always puts the moving average at the forefront in the core of his seven-character technique of "moving average K-line volume". (To be continued!)

ps: The current market is very similar to the time period of December 2oo8 written in my book, which is very interesting.

Baozi said in the V skirt today, the performance fell by 69%, and the market broke 22oo, and it only fell by more than one point, rather than taking advantage of the situation to kill, so the market will still go up.

In addition, I reminded after the chapter - I saw many people in the group reflect that the commission is one thousandth or even higher, and some low ones are a few ten-thousandths, which can be applied for adjustment, a small trick is to call the account manager or customer service, saying that they like to do short-term, and the commission is relatively high is not conducive to short-term, if you don't adjust, transfer to other brokers. In many cases, such a threat will be considered by securities companies to be lowered. In addition, you can find newcomers to securities companies to open an account, because they have little experience and have to brush up on performance, so it is easier to talk.

Tips: The new domain name "biquge.info" has been launched by Biquge, and the original domain name is about to be discontinued. Please tell each other, thank you!