(1) If the stock price deviates too far from the 5-day line or is too much higher than the 5-day line, that is, if the "5-day divergence rate" is too high, it is a short-term selling opportunity. The deviation rate that can be sold varies depending on the strength and size of individual stocks. Generally, if the stock price is above the 5-day line by 7% to 15%, it is considered high and suitable for sale. If it is a bear market, generally the stock price is below the 5-day line by 7% to 15%, which is suitable for short-term buying.
(2) If the stock price falls back and cannot break the 5-day line, it is suitable to buy when restarting. Generally speaking, slow bull stocks often do not break through the 5-day or 10 day lines during their upward trend. As long as it remains stable, one can continue to hold positions based on the overall trend and individual stock fundamentals. If it is a bear market and the stock price rebounds but cannot break through the 5-day line, it is appropriate to sell when there is a significant sell-off or decline again.
(3) If the stock price falls below the 5-day line and cannot cross the 5-day line, one needs to be cautious of being trapped by chasing high prices and be careful to sell at high prices. If it is a bear market, if the stock price rises above the 5-day line and does not fall when the 5-day line is reversed, or if the 5-day line is reversed and falls below but stops, it is necessary to be cautious of buying at low prices.
(4) If the stock price effectively falls below the five-day line, it will generally fall towards the 10 day or 20 day line. If the stock price stabilizes at the 10 day and 20 day lines and restarts, the chips sold at high levels can be replenished in the short term depending on the situation to avoid being short sold. If it is a bear market, if the stock price effectively breaks the five-day line, it will generally rise towards the 10 day or 20 day line. If the stock price is blocked near the 10 day or 20 day lines and continues to decline, the chips bought at a low level can be sold in the short term depending on the situation.
The starting point of the 120 day moving average. Most of the rally points are around the 120 day line. The first type is an upward volume breakthrough after being sorted out below 120 days. The general form of organization is bottom w. The second approach is to sort out small fluctuations around the 120 day moving average, and then increase volume to break through. The organization form is not very regular. The third type is to consolidate above the 120 day moving average and then increase volume to break through, with a consolidation pattern mostly in the form of a bottom or a "one" shape. The effect is better when combined with other indicators, mainly referring to the technical indicator KDJ, WR，MACD.
The second golden cross on the weekly chart captures big bull stocks. When the stock price (weekly chart) rebounds after a period of decline and breaks through the 30 week line, we call it a "weekly golden cross". This is just a market maker building a position, and we should not participate, but stay on the sidelines; When the stock price (weekly chart) breaks through the 30 week line again, we call it the "second golden cross of the weekly line", which means that the market makers have finished washing and are about to enter the upward period, and there will be a significant increase in the future market. We should closely monitor the trend of the stock, and once its daily or intraday system (60 minutes, 30 minutes) sends a buy signal (such as the small green bar buy point of MACD), we should not hesitate to enter the market and buy the stock. In addition, we can also extend the conditions for the "double golden cross of the monthly line" to generate large bull stocks, which can be said to be met by 90% of large bull stocks.
When the two moving averages side by side start to diverge, and the 13 day moving average crosses the 21 day moving average, it is the best buying point. A rising stock's short-term selling point is when its 3-day moving average crosses below its 4-day moving average. Wearing twenty-one on thirteen, eating boldly and smoothly upwards; Turning around in three days and crossing over in four days, hurry up and wait for the next time.
