The 20 day moving average is the average closing price of a stock in the previous 20 days on the market. Its significance is that it reflects the 20 dayaverage cost。
The 20 day moving average is short-termMoving average systemThe one with the largest parameter inMoving Average, and10 day moving averageIn comparison, the 20 day moving average is higher than the 10 day moving averagecycle time10 more intervalsTrading dayTherefore, changes in the 20 day moving averageFrequency ratioFor the 10 day moving average, it pays much more attention to trend changes.
20 day moving averageIt is the average closing price of a stock in the previous 20 days on the market. Its significance is that it reflects the average cost of the stock in the previous 20 days.
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The application of the 20 day moving average in actual combat should pay attention to the following conditions:
20thaverageThe selected cycle parameter is relatively large, so although it belongs toShort term moving averageHowever, it has begun to approach the medium-term moving average, so in practice, when using the 20 day moving average to judge the market trend, we should consider the short and medium termtrend, we should not only consider short-term changes, otherwise there will be operational errors.
The trend analysis of the 20 day moving average is still that the rise represents the upward trend in the medium and short term, and the downward trend represents the downward trend. Therefore, when using the 20 day moving average to analyze the trend, you can also use it to judge the position of market support or pressure, but at the same time, you must pay attention to the 20 day moving average as support or pressureEffectiveness, otherwise it will lead to false stop loss.
20 day moving average in the marketBoxThe operation process will be relatively stable, that is, if the marketFluctuation rangeSmall, the 20 day moving average may be nearly parallelrunning state 。
