The 60-day moving average is actually a quarterly line, because every month has more than 20 trading days, and three months is 60 trading days. The 60-day moving average is the standard medium-term moving average, which plays an important role in judging the medium-term trend of stock prices. Many traders regard the 60-day moving average as their lifeline. Judging from the actual statistics of Shanghai and Shenzhen stock markets for many years, once the stock price falls below the 60-day moving average, the whole rally may end and the decline may come.

After the 60-day moving average goes flat, it turns upward, and the temporary market can be heavily involved. The above picture shows the daily K-line chart of Times Wan Heng (60024 10). When the stock price was in 5.5 yuan in February 2008, the 60-day moving average began to level off. At this time, investors should wait and see calmly and wait patiently. In the next few days, around 6 yuan, the 60-day moving average began to turn head up. At this time, investors can intervene in a heavy position and must have enough courage to attack in a heavy position.

Once the 60-day moving average turns head down, investors should unconditionally clear their positions and wait and see to avoid the risk of a sharp decline, as shown in the above figure, the daily K-line chart of the Shanghai Composite Index. In the big bull market in 2007, I believe many investors made money, but later they not only lost the money they earned, but also lost their capital. This is because they don't attach great importance to the signal that the 60-day moving average turns head down.

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