Introduction to the 60-day moving average of the long-short dividing line
2. The 60-day moving average is the average of 3-month trading prices, and 3 months is 1/4 of a year, and the number 3 is also the critical point or qualitative change point of human psychological changes, "over and over again." "Three, three and exhaustion", this is what "things cannot be more than three" means.
3. Three months is the basic time range for large funds to complete their investment layout and bear the cost of capital interest. In a major trend, there is a strong regular operating rhythm between the 60-day or 60-day weekly moving average and the trend price. Not any crossing of the 60-day moving average is called a breakthrough, but 20% is appropriate. Otherwise, it cannot be easily regarded as a breakthrough. It is better to regard it as a general crossing and then follow up and observe it. The 60-day moving average is a good buying opportunity.
The role of the 60-day moving average:
1. Indicate the mid-term reversal trend of price and guide the price to run within the established trend at large band levels;
2. When the price breaks through the 60-day moving average upward or downward in heavy volume, it means that a large-scale reversal has started, and corresponding trading decisions should be made before the market is opened;
3. When the price breaks through the 60-day moving average, it will generally not run in the opposite direction in a short period of time. Even if the main force makes a move to induce long or short positions, it will at least run above or below the 60-day moving average for 10~ It takes about 25 trading days to reverse;