The moving average is a kind of technical index which uses the method of statistical analysis to average the stock price (index) in a certain period, and connects the average value of different times to form a Ma, which is used to observe the change trend of securities price. So what are the average buying rules?

Buying rules

Buying rule 1: the moving average gradually flattens from the decline and rises slightly to the top. When the stock price breaks through from the lower direction of the moving average, it is a buying signal.

Analysis: the change of moving average indicates that the original downward trend of stock price has changed. Under this premise, the pressure of stock price breaking through the moving average from bottom to top is an obvious buying signal at the beginning of the trend.

Buying rule 2: moving average upward and the stock price running above the moving average, when the stock price falls, does not fall below the EMA and then rises again, which is the buying opportunity.

Analysis: moving average upward means that the trend is in the rising operation, the stock price falling is effectively supported by the moving average, indicating the integrity of the upward trend, which is an ideal signal to increase positions.

Buying rule 3: the direction of the moving average remains unchanged, the stock price falls rapidly above the moving average, and then goes up the EMA again after falling below the EMA, which is the buying opportunity.

Analysis: the direction of the moving average remains unchanged, indicating that the original direction of the trend has not changed, so it is a kind of short-term callback behavior to return to above the moving average again after the rapid fall of the stock price, which is mostly a short-term acceleration of the buying signal.

Buying rule four: moving average down, and stock prices below the moving average, a sharp fall away from the moving average, this is the time to buy.

Analysis: moving average downward means that the stock price is in a downward trend, and the stock price drops rapidly and is far away from the moving average. At this time, it is easy to have a retaliatory rebound trend. This kind of buying signal is an act of grabbing the short-term.

Buying rules

Buying rule 1: the moving average gradually flattens from the decline and rises slightly to the top. When the stock price breaks through from the lower direction of the moving average, it is a buying signal.

Analysis: the change of moving average indicates that the original downward trend of stock price has changed. Under this premise, the pressure of stock price breaking through the moving average from bottom to top is an obvious buying signal at the beginning of the trend.

Buying rule 2: moving average upward and the stock price running above the moving average, when the stock price falls, does not fall below the EMA and then rises again, which is the buying opportunity.

Analysis: moving average upward means that the trend is in the rising operation, the stock price falling is effectively supported by the moving average, indicating the integrity of the upward trend, which is an ideal signal to increase positions.

Buying rule 3: the direction of the moving average remains unchanged, the stock price falls rapidly above the moving average, and then goes up the EMA again after falling below the EMA, which is the buying opportunity.

Analysis: the direction of the moving average remains unchanged, indicating that the original direction of the trend has not changed, so it is a kind of short-term callback behavior to return to above the moving average again after the rapid fall of the stock price, which is mostly a short-term acceleration of the buying signal.

Buying rule four: moving average down, and stock prices below the moving average, a sharp fall away from the moving average, this is the time to buy.

Analysis: moving average downward means that the stock price is in a downward trend, and the stock price drops rapidly and is far away from the moving average. At this time, it is easy to have a retaliatory rebound trend. This kind of buying signal is an act of grabbing the short-term.

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