The 60-day moving average is generally a medium-and long-term trend. The 60-day average price is the closing average price in the last two months, which is of great significance to the later trend of individual stocks. Many technical indicators have been made clear, so if individual stocks effectively fall below the 60-day average price, most of the market will be bearish.
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Comparing the moving averages of 10, 30 and 120, it is obvious that the 60-day moving average can clearly show the big changing trend of the market, and at the same time, it will not be too sensitive or too lagging. This is more obvious in the stock market with obvious unilateral trend from 2006 to 2009.
The 60-day moving average defines the mid-term reversal trend of the stock price, which is called the decision line. Breaking through and falling below the moving average represents the arrival of a bull market or a bear market. This time is the time for investors to make decisions, and the name of the decision line comes from this. It also applies to indices.
It is worth noting that those stocks below the 60-day moving average may also go out of the rising market, but they are often under strong pressure at the 60-day moving average and re-enter the downtrend channel. We call this stock market a rebound. The rebound market is often short-lived.
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