Definition and usage precautions
1. The five-day moving average is above, the ten day moving average is below, and the five-day moving average is overlapping from top to bottom, approaching the intersection with the ten day moving average. The five-day trading average and the ten day trading average tend to be consistent, roughly flat.
2. On the day when the five-day moving average and the ten day moving average converge, the K-line is a bullish line, corresponding to a bullish daily trading volume.
3. On the day before the five-day moving average and the ten day moving average approach the intersection, the K-line is a bullish line, and correspondingly, the daily trading volume is bullish. In most cases, this daily volume is smaller than the approaching intersection day volume.4. The five-day moving average and the ten day moving average approach each other, and the next day, the candlestick is a bearish candlestick, corresponding to a bearish daily trading volume.
5. Appearing in the late stage of sideways consolidation and on the eve of a significant upward trend.
6. The corresponding process on the candlestick is often the shaking and washing of positions by the market makers.
7. When the five-day average transaction volume and the ten day average transaction volume tend to be consistent, a positive or negative error of less than 10% is allowed, and the closer the two are, the better.
8. Meets one of the four buying rules of the Greenville moving average.
9. The trading volume combination appears simultaneously or within one or two trading days after its occurrence.
The above is an introduction to the usage techniques of stock trading volume combinations, hoping to be helpful to everyone.
