What do the three lines in ** represent.
The three lines in * refer to the three lines of different colors in the graph, which are the 5th and 20th. These lines are one of the commonly used indicators in technical analysis, and they can help investors understand trends and buying and selling points.
First, let's understand what is **. It refers to the weighted average of the *** price in a certain period of time, so as to obtain an average value, and connect this average value into a line. Commonly used ** are 5 days ** and 30 days ** and so on. These can help investors understand the average cost and average of the market, so that they can better grasp the trend and buying and selling points of the market.
Next, let's introduce the significance and role of these three lines in detail.
5-day** refers to a line formed by the average ** price of the last 5 trading days. This line is often regarded as one of the important reference indicators for trading. When the stock price falls below the 5-day**, this is usually seen as a sell signal; Conversely, when the stock price breaks above the 5-day, this is often seen as a signal.
10-day** refers to a line formed by the average ** price of the last 10 trading days. The 10-day fluctuation is relatively small compared to the 5-day**, but it is more stable. Therefore, the 10-day is often regarded as one of the important reference indicators for medium-term trading. When the stock price falls below the 10-day**, this is usually seen as a signal to reduce or sell; Conversely, when the stock price breaks above the 10-day, this is usually seen as a signal to add to the position or **.
20-day** refers to a line formed by the average ** price of the last 20 trading days. Compared to the 5-day** and 10-day**, the 20-day ** volatility is more modest, but more reflective of the long-term trend of the market. As a result, 20-day** is often seen as one of the important reference indicators for medium- and long-term trading. When the stock price falls below the 20-day**, this is usually seen as a signal to leave or sell; Conversely, when the stock price breaks above the 20-day**, this is usually seen as a signal to open a position or **.
To sum up, the three lines in ** represent ** indicators of different periods. These indicators can help investors better grasp market trends and buying and selling points, so as to make more informed investment decisions. Of course, in practice, investors also need to conduct comprehensive analysis in combination with other technical indicators and market information to avoid blindly following the trend and overtrading.