What is a Displaced Moving Average?

The moving average is based on the "average cost concept" of Dow Jones, and uses the "moving average" principle in statistics to connect the average value of stock prices over a period of time to show the historical fluctuation of stock prices. Technical analysis methods that reflect the future development trend of the stock price index. It is a figurative expression of Dow's theory.

Moving average

Moving average is

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The 60-day moving average is the lifeline of the stock price, and there is a certain downside below the lifeline. The broad market index also has this pattern. When the index falls below the 60-day moving average, it means that the broad market has some downside. The broad market index is generated by weighted statistics of all individual stock prices, but the individual stock prices are very different: when most of the stock prices fall below the lifeline, a small part of the stock price can still stay above the lifeline. The so-called strong stocks refer to This part of the stock.

When the index first fell below the lifeline, many strong stocks could be found in the market, but as the index continues to fall, fewer and more stocks can withstand the test and persist above the lifeline. Really strong stocks can withstand it. The index continues to fall, and when the next index rise wave starts, it still persists above the lifeline, and there is often a dark horse seedling in the next wave of prices. Knowing this, we don't have to look for dark horse seedlings when the index just started to fall. It turns out that the candidate dark horse is often futile at this time. When the index gradually decreases, the energy of the short side will gradually weaken, manifested as: the Yin line entity gradually decreases until a T-shape with a long lower shadow line, or a cross star. Volume gradually shrank until it shrank severely. The distance between the 5-day moving average and the 10-day moving average begins to decrease until they stick together. This at least shows that the space for falling is getting smaller and smaller, and this is a good time to observe the dark horse seedlings. The point of observation is: which stocks can stay on the lifeline? Above the 60-day moving average, you can also distinguish between the 5th, 10th, 20th, and 30th gears. The strongest stocks can be above the 5th moving average, followed by the 10th, 20th, and Individual stocks above the 30-day moving average. In addition, we must also observe the length of the sideways movement above the 60-day moving average. The longer the time, the stronger the trend. There is also the thickness of the stock price between the 60-day moving average. The larger the thickness, the greater the determination of the main force to collect chips, and the greater the future rise.