Making good use of the 5-day moving average is a moving average that short-term operators must pay attention to. The specific applications are as follows:

1. The moving average gradually flattens out from a decline and slightly rises upward, and the stock price breaks through from the bottom to the top of the moving average, which is a buying signal.

2. When the stock price is above the moving average and does not fall below the moving average during a pullback but then rises again, it is a good time to buy.

3. The stock price is above the moving average and falls below the moving average during a pullback, but the short-term moving average continues to show an upward trend. This is a good time to buy.

4. The stock price is running below the moving average and suddenly plummets. It is too far away from the moving average and is very likely to approach the moving average (everything will turn around when it reaches its extreme, and the stock price will rebound). This is the time to buy.

5. The stock price is running above the moving average and has been rising sharply for several consecutive days, moving further and further away from the moving average. This shows that those who bought the stocks recently have made huge profits and there may be selling pressure for profit-taking at any time, so you should temporarily sell your holdings.

6. When the moving average gradually flattens out from an upward trend and the stock price falls below the moving average from above, it means that the selling pressure is getting heavier and the stocks held should be sold.

7. The stock price is running below the moving average. It does not break through the moving average during the rebound, and the moving average’s decline slows down. After becoming horizontal, it shows a downward trend again. This is the time to sell.

8. After the stock price rebounds, it hovers above the moving average, but the moving average continues to fall. It is advisable to sell the stocks held.

However, simply using the five-day moving average can easily cause fatigue and the effect is not obvious. If you make good use of the 20-day moving average and the 60-day moving average, the efficiency will be greatly improved.

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