Stock Terms: Annual Line &Nbsp; What Is The Annual Line?

Stock terms:

Generally speaking, the annual line is 250 days.

The essence of the annual line is still a simple moving average, but its parameters have certain special significance.

Because all the trading days add up to about 250 days in a year, and the average annual rest days and holidays are added.

What does it mean to fall below the annual line?

The annual line has always been regarded as the "ox bear pformation line". Once it falls below the annual line and can not recover quickly, it will announce the end of the rally.

As the annual line, the parameters are generally set to 250 days, and some investors use the original number of 360 days, and the 250 day parameter is used as the annual line standard. It is calculated on the 365 day, excluding all kinds of holidays in a year, and the rest of the paction time is about 250 days. Therefore, according to the principle of the analysis tool close to the paction time standard, the market finally acquiesed 250 days as the annual line parameter.

From the above statement, we can pay attention to a problem: from the calculation process, the result of 250 days is quite rough, that is, the annual line itself is not a moving average line in the sense of precise annual trading day (in fact, according to the actual trading date, excluding all the rest days, the annual line parameter should be around 230).

The 250 day line: that is, the average of stock index or stock price on the 250 day, will produce this average every day. After a period of time, a more smooth curve can be seen.