What does the average mean in the stock?

The moving average is the weighted average of the daily closing price, thus obtaining a trend trajectory. The moving average system is a common technical tool for most analysts. From a technical point of view, the psychological price factors that affect technical analysts. Thinking about the decision-making factors of trading is a good reference tool for technical analysts, which lags behind the price changes.

The moving average index is actually the abbreviation of moving average index. Because this indicator is an important indicator reflecting the price trend, once it is formed, it will last for a period of time, and the high point or low point formed by the trend operation has the function of blocking or supporting respectively.

Therefore, the location of EMA index is often a very important support level or resistance level, which provides us with a favorable opportunity to buy or sell, and the value of EMA system is also here.

Extended data:

Characteristics of moving average

1, trend tracking. The construction principle of moving average index determines that it has the characteristics of reflecting the price running trend;

2. Stability and hysteresis. Because the moving average is a new price point connection generated after the arithmetic average of the closing price, it is more stable than the price change;

3. Help rise and fall.

As for the calculation, for example, the 30-day moving average is the closing price of the market for 30 days, divided by 30 to form the 30-day moving average, and then connected in turn to form the 30-day moving average.

Baidu encyclopedia-moving average