The essence of the 5.20 rule is to follow suit. The beginning of a wave of short-term market balance in the city must start with the currency price effectively standing on the 5 th line and end with the effective fall below the 5 th line; The beginning of a wave of mid-line market must start with the currency price effectively standing on the 20 th line and end with the effective fall below the 20 th line.
Technical points:
1 and the 20-day moving average, as the lifeline of currency prices, are bound to show an upward trend.
The 20 moving average is generally the support line of the trend. When the moving average of 20 rises, the price of money is generally on the rise. When the 20 moving average changes from top to bottom, it shows that the trend has begun to turn.
The 2.5-day moving average gradually approaches the 20-day moving average, but the two lines do not intersect.
The 5-day moving average and the 20-day moving average do not intersect. The first shows that the currency price has not fallen below the 20-day moving average. The second shows that the 20-day moving average is faster and has strong support. The turn of the 5-day moving average does not affect the speed of the 20-day moving average.
3. When the currency price falls to the vicinity of the 20-day moving average, the trading volume is obviously smaller than that in the previous period.
The decline in prices shows that the main force has not gone, and the main force has no intention of falling below the 20-moving average. Therefore, when the currency price once again stands on the 5-moving average, it means that the decline is just a dishwashing.
4. Pay attention to the number of times that the 5-day moving average and the 20-day moving average turn from the golden fork to the current 5-day moving average (trick).
This is the core of the 520 tactics. Why should we pay attention to the number of times that the 5-day moving average moves closer to the 20-day moving average? This is related to wave theory. What we should do most is to move the 5-day moving average and the 20-day moving average together for the first time after the bonding deviation. The success rate of the first move is the highest, the success rate of the second move is lower, and the third move is lower, which may be risky.
In essence, it is the five-wave rise in wave theory, and it is the market after the callback of two waves and four waves, of which the second wave is the biggest, because the third wave has the longest rise time and the fastest speed. The increase of 5 waves is generally not as long as 3 waves, and there is a risk of not hitting a new high; The third time shows that the wave is prolonged and occurs less times, so it is best not to do it three times in front of probability.
Best buying point
1. Aggressive investors can intervene decisively on the day when the currency price is adjusted to the 20-day moving average and win a short-term rebound.
This must pay attention to the speed of the 20 moving average. When the speed is fast, you can enter the market decisively when the stock price is adjusted to the 20 moving average. If the speed is slow, it is safer to choose the second trading method.
2. Steady investors can intervene when the currency price stops falling obviously on the 20-day moving average and then starts to rebound and stand on the 5-day moving average again.
MACD is low, and the secondary gold fork may skyrocket-
When the DIFF and DEA indexes of MACD are below the zero axis, if the golden fork appears twice in a short period of time (8 or 13 trading days), it may skyrocket in the second golden fork formation.
MACD has a very high probability that the second golden fork will break out in the low position, because the first golden fork has already paid the risk cost for the second golden fork. After the first golden fork, the bears attacked again in a small range, which led to the formation of MACD dead fork. However, the short attack was completely defeated in front of the second golden fork of many parties, which triggered the eruption of long power.
When using MACD indicators, we should also pay attention to the following points:
1.MACD may not have a skyrocketing currency when it is in the low position for the first time, but the probability and grasp are higher when it is in the low position for the second time.
2. If the MACD low secondary gold fork is comprehensively analyzed by K-line shape and volume-price relationship, the reliability will be higher.
3. Using MACD and 30-day moving average to find the bottom can eliminate most invalid signals and leave the most accurate buying signal.
Rules of use: the DIFF line of MACD indicator does not rise above the zero axis after passing through the DEA line below the zero axis, but then passes through the DEA line. At this time, the coin friend can wait for the two lines to pass the gold again. If the two lines cross gold again below the zero axis, the 30-day moving average will reverse upward, indicating that the currency has successfully bottomed out, and there is a great possibility that there will be a wave of market after that.