The shape of the 5-day moving average composite M-head is the same as that of the 5-day moving average standard M-head, with two tops and the middle depression as the neckline position. The difference is that the graphic line between the two tops of the 5-day moving average compound M head is not a simple depression, but appears in the form of W bottom, head and shoulder bottom and so on. The selling signal of the 5-day moving average compound M head is very strong, and the stock should be sold in time.
Key operation points:
(1) The selling point of the compound M-head of the 5-day moving average should be grasped in three places. The first is the left top high point of M head, the second is the right top high point, and the third is the intersection of the 5-day moving average and the 30-day moving average. Selling at any point in this orchid is a successful operation.
However, many investors have neglected these three selling points. Seeing that the 5-day moving average has crossed the 30-day moving average, they are reluctant to sell stocks when the market becomes extremely bad. When the stock is unbearable, sell it cruelly. As a result, they sold a rock bottom price, and the loss was quite heavy. Many people have experienced this lesson, but they just didn't pay attention to it. In order to make a living in the future, they will sell it decisively.
(2) When selling according to the selling signal of the 5-day moving average compound M head, you should also refer to the trend of the K-line chart and choose the selling point. Selling combined with the selling signal shown in the K-line chart can increase profits and reduce losses. Every investor should always pay attention to the change of K line in order to capture the best selling point.
A simple overview, detailed reference books related to this system to learn, combined with a simulation disk to practice, so that theory can be quickly and effectively practiced to master skills, the current simulation version of Niu Gubao is not bad, with a number of indicators to guide, it is very helpful to use, I hope to help you, I wish you a happy investment!