What is the moving average (MA)? 6? 1 is a technical analysis method based on Jones's "average cost concept" and the principle of "moving average line" in statistics, which connects the average stock price in a period of time into a curve to represent the historical fluctuation of stock price, and then reflects the future development trend of stock price index. It is an intuitive expression of Dow's theory.
Definition of moving average: "average" refers to the arithmetic average of the closing price in the last n days; "Moving" means that we always use the price data of the last n days in our calculations. Therefore, the average array (the closing price of the last n days) moves forward day by day with the change of the new trading day. When we calculate the moving average, we usually use the closing price of the last n days. We add new closing prices to the array day by day, and the closing prices of n+ 1 from bottom to top are removed. Then, divide the new sum by n, and you will get the new day's average (n-day average). ■ Calculation formula:
Ma =(C 1+C2+C3+...+Cn)/N C: closing price of a certain day n: moving average period.
According to the calculation cycle, the EMA can be divided into short-term (such as 5th, 10), medium-term (such as 30th) and long-term (such as 60th, 120) EMA.