The 60 day moving average is the average closing price of a stock in the market for the previous 60 days, which reflects the average cost of the stock over the 60 days. The 60 day moving average is generally a medium to long term trend, and the 60 day average price is the closing average price of the past two months, which is of great significance for the later trend of individual stocks. Many technical indicators are already clear, so if a stock effectively falls below the 60 day average price, it is mostly bearish in the future.

So, how to use the 60 day moving average to capture dark horse and big bull stocks? What are the techniques for selecting stocks based on the 60 day moving average? The conditions for the establishment of Black Horse:

When the stock price crosses the 60 day moving average, it must continuously increase volume and gain market recognition and approval. Otherwise, it cannot be considered an effective upward trend. Once the volume cannot keep up with the pace of the 60 day moving average, it will mean that the market will enter a technical recovery trend of consolidation in the short term, and there will not be many opportunities for participation in the short term; Also, be particularly careful of sudden surge in volume, which may be a tactic used by the main force to sell, and may cause another downturn in the short term.

The timing for the dark horse to enter:

After a wave of price decline and adjustment, after long-term sideways or narrow range fluctuations, various moving averages below 60 days show short-term golden crosses rising again, or sticking to the upward golden cross and then sticking again, which is a sign of mid-term market outbreak; The 60 day moving average turns from a downward trend and advances upwards, accelerating the market. Every time the 60 day moving average is not broken, it is a buying opportunity.

Black Horse Departure Timing:

When the short-term 5-day and 10 day moving averages form a dead cross with the 20 day moving average, reduce positions first to lock in profits; When there is a signal of a peak in volume and the short-term moving average (5-day, 10 day, 20 day, 30 day) forms a dead cross and crosses the 60 day moving average downwards, the entire position should be withdrawn.

Application rules:

1. Previously, there was a strong upward trend, but now it has rebounded to near the 60 day moving average, gaining some support;

2. The 60 day and 120 day lines are still in a bullish position;

3. The 60 day line forms an oblique angle of about 30 degrees and diverges upwards;

4. Funds have started to pay attention again, especially with the main funds attacking.

Operation points:

1. The 60 day moving average has re leveled at a low level and started to turn upwards (the turning point means that the value of MA60 has started to show a rebound from a decline), and the stock price has remained stable on the line. After confirmation through a pullback, it indicates that there are signs of a good mid-term trend;

2. The trading volume of the mid-term upward trend should be in a mild process of increasing volume;

3. Radical investors can buy when the 5-day moving average rises;

4. After buying, it is important to hold onto stocks and not easily make short positions.

Selling techniques:

1. The 60 day moving average has leveled again and started to decline, and the stock price has closed below the 60 day moving average. It has been confirmed that it is unable to maintain a stable position at the 60 day moving average, indicating signs of weakening in the mid-term trend;

2. The process of decreasing trading volume, shrinking volume, and declining volume, and the inability to increase volume during rebound;

3. Radical investors can sell when they effectively break below the 5-day moving average;

4. Don't rush to rebound after selling.