The stock K-line chart, also known as the candlestick, was originally a tool used by Japanese rice merchants to express the rise and fall of rice prices. It was later introduced to the stock market and gradually became popular in Southeast Asia. K-line charts are very popular among investors for their intuitive and three-dimensional characteristics. Practice has proven that careful study of K-line charts can more accurately predict the market outlook, and can also more clearly judge the balance of power between the long and short sides, thereby providing an important reference for investment decisions. What is the 5-day moving average and the 10-day moving average in stocks? It is a component of the K-line chart. The following is a question from netizens that has been answered many times. In fact, you can Search for the answer in Know. The moving average uses statistical processing to average the stock prices of several days and then connect them into a line to observe the stock price trend. The theoretical basis of the moving average is Dow Jones's "average flat" concept. There are usually 5-day, 10-day, 20-day, 30-day, 60-day, 120-day moving averages. The purpose is to obtain the average cost for a certain period of time, and use the moving curve of the average cost to match the line changes of the daily closing price to analyze the advantages and disadvantages of the long and short situation in a certain period, so as to judge the possible changes in the stock price. Generally speaking, if the current price is above the average price, it means that the market demand is large and the market is promising; on the contrary, it means that the buying pressure is heavy and the market is bearish. The following takes the 5-day moving average as an example to illustrate the origin of the moving average: Calculate the arithmetic average of the 5 closing prices from the 1st to the 5th day to obtain the first 5-day average price; Calculate the arithmetic mean of the 5 closing prices to get the second 5-day average price. By analogy, a series of 5-day average prices can be obtained. Connecting these 5-day average prices with a curve becomes a 5-day moving average.