If the 5-day moving average is above the current K-line, short-term buys and long positions will be locked up, and short-sellers will be profitable.
In the downtrend, the stock price rebounded to the 5-day moving average and then went down again, and the decline was very strong. First of all, we need to clarify a concept: the price is obtained through trading, and judging the current market price is nothing more than judging whether the current market is more willing to buy or sell. If 10 yuan rises to 20 yuan, then we will buy frantically below 20 yuan and sell before 20 yuan. Through our efforts, everyone has jointly pushed the price to 20 yuan. There are also a group of people who got God's will and said that the price will rise to 30. When we leave the market at 20, the stock price will inevitably fall back, because most of the price that can be raised to 20 yuan has already gone. Now the market In the state of selling, that is to say, when everyone is selling, the price will inevitably fall back. Another group of people who got God’s will and the price will rise to 30 will try their best to buy stocks, and the stock price will inevitably rise to 30, that is, we will not generate too much power by selling at 20 yuan, because there are another group of people in the market People drive up prices. If there are many people in the market who are convinced that the stock price will rise and they have most of the funds and are buying stocks at the same time, then the stock price will go up; fall. Similarly, in the HSI market, if there are fewer bulls and more bears at the position of the 5-day moving average, then those who are locked up or unwinding will sell at this position, and the short-term market will sell, and the rest will be at this position If you continue to seize the opportunity to short, the stock price will inevitably go down. And if the market believes that the price has risen, when the price rises to the early stage, people who have locked up their positions, although a small number of those who have locked up are timid and leave the market, while the rest of the people in the market are very determined to be bullish, then the people who left the market will be more confident. The chips will be bought by those who are firm and bullish regardless of the cost, and the stock will continue to rise. At this time, the pressure level is no longer pressure.
If you don't understand the principle, when the price reaches the pressure or support level, you will hesitate to do it. It is not clear whether to go long or short? But after understanding why the moving average principle is pressure and support, we only need to judge the direction we should follow through the strength of the current price rise and fall, it's as simple as that. For example, when there is a short selling signal in the 510 system, if you don’t know whether you should follow up at this point, what you need to do is actually very simple. Observe the nearest moving average and see if the current position of the holding position is strong for buyers or strong for sellers , if the willingness of the seller is in the majority at this time, what we have to do is to follow the strength of the seller, follow the current trend, enter the market according to the current signal, and set the stop loss position a little above the hold-up resistance position, such as 10-20 points. When you set a stop loss and enter the market, you can sit back and enjoy the profit. This is what the 5-day moving average combined with the 510 trading system does. Of course, the 510 trading system is a very simple entry-level trading system, which will be extended in the future.
Let’s talk about the long-term arrangement and the short-term arrangement. Taking the 5-10 30-day moving average as an example, the uptrend is in the long-term arrangement, and the downtrend is in the uptrend. However, the long-term arrangement must not necessarily rise, and the short-term arrangement must fall. You must understand the principle. The moving average represents the average holding cost. When the 5-day average holding cost is above the 10-day holding cost, and the 10-day is above the 30-day holding cost, it means that the average holding cost of buying in the current 5 days is higher than the average holding cost of buying on the 10th. The average holding cost is higher than buying on the 30th because the stock price is rising. In this case, don't enter the market rashly, but wait for the signal. When the stock price, that is, the K-line is too far away from the 5-day moving average, it will fall back, and then rise again when it reaches near the 5-day moving average. That is to say, when the people who bought at the 5-day moving average cost reach a certain level of profit, most people will leave the market with a profit. If you continue to be bullish, the stock price will continue to rise. That is: whether the stock market rises or falls depends on the power balance between the buyer and the seller. What we need to pay attention to is whether the buyer is strong or the seller is strong in the market. All moving averages are used to assist in judging this.
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