1、 General characteristics when multiple moving averages converge

1. Multiple moving averages gradually diverge from a downward trend to a horizontal trend, with each moving average spaced closely apart. One or two of the moving averages begin to hook upwards, signaling a halt to the decline or an imminent upward breakthrough.

2. Multiple moving averages have gathered together, with two of them sticking together at the upper level and two intersecting at the lower level, but the space between the upper and lower levels is not large.

3. Multiple moving averages converge, with 2-3 moving averages intersecting in the lower range and 1-2 moving averages clearly pointing upwards in the upper range, with limited distance between the upper and lower ranges. At this point, the probability of a strong upward breakthrough in stock prices is higher.

4. When the six moving averages mentioned above, including the 5-day, 10 day, and 30 day moving averages, are all clustered together with similar intervals between each moving average, it is worth paying close attention to as stock market changes are imminent.

2、 How to make good purchases

Based on the position of the stock and the characteristics of the moving average mentioned above, we will be able to further grasp the buying point.

1. After a wave of adjustment, the stock oscillates upwards for a period of time, but the range of operation is limited. As multiple moving averages gradually gather, the stock price shows the length of turnover time or the corresponding width of the span in the form of a platform. If the corresponding moving average shows the above situation, it will be an opportunity for attention. Beneficial benefits similar to the current trend. After patiently accumulating momentum, these types of stocks usually experience a steady upward trend once they break through.

Operational strategy: More suitable for those who are stable to pay attention to. Buy in batches before the upward breakthrough without increasing volume, and there is no abnormal trading volume during the rise. If there is a significant increase or decrease in volume, it is advisable to hold onto the stock patiently and wait for the rise. When there are new variables in the market, you can see the closing hand in a timely manner.

2. After the stock has bottomed out and rebounded, its operating state is similar to a "factory" shape, and it is currently accumulating momentum within a platform. The corresponding moving average shows the above situation of 2 or 3, so make final preparations before further upward movement. There is a high possibility of this type of stock choosing to go up.

Operational strategy: More suitable for short-term trading. Since the moving average has gathered and started to diverge upwards, indicating that the stock price is fully prepared, once it starts, it will be a lightning fast trend. Therefore, it is necessary to intervene in advance before breaking through and wait for a rapid surge before making a move.

3. When multiple moving averages of stocks converge, regardless of whether they have gone through an uptrend or a downtrend, the market shows active stock behavior, jumping up and down, and the stock price operates within a certain range in relative time. When the stock price turnover ends, the moving average clearly moves in the same direction. Based on its active personality, the time for stock prices to gather and rest together will not be too long. Even if there is a market trend, it will eventually be broken.

Operation strategy: This method of washing the bearish candlestick is relatively concealed, especially in the early stages of bottoming out. Most people will be intimidated by the sudden appearance of the bearish candlestick and consider it a sign of bottoming out. Whether to intervene can be analyzed based on the amplitude of the stock price at that time, the upper range space, trading volume, etc. It can be determined that the main force deliberately suppressed it, so you can follow up with confidence, as the risk is relatively small. On the contrary, in a daily candlestick chart, if a bearish candlestick swallows the fruits of consecutive days of gains, one should be cautious of the risk of a second dip and wait and see.

4. A relatively special situation: while maintaining a good operating trend, a bearish candlestick suddenly appears during trading on a certain day. Due to the influence of fundamental news, whether it is bearish or bullish, if the bearish trend is not affected after trading, one can also intervene at a low price.

If you encounter any of the above situations recently, you can simply refer to the author's suggestion. Of course, if multiple technical indicators can be combined for comprehensive analysis, the chances of winning are greater.