1. The moving average shows a sharp upward trend; after a period of rise, the moving average begins to flatten; when the stock price falls from the top to break the flat moving average, it is a signal to sell.
In order to verify the reliability of the signal displayed by a moving average, several moving averages can be selected for cross-reference. Under normal circumstances, the trading volume will decrease accordingly, and the signal to sell will be clearer.
2. First make sure that the moving average is in the process of declining, and then make sure that the stock price breaks through the moving average from bottom to top. The stock price breaks through the moving average and immediately falls back. When it falls back below the moving average, it is a signal to sell. .
This sell signal should be placed on the rebound after the stock price fell, that is, when the stock price fell back to about one-third of the previous decline, it should be sold when it immediately showed a downward trend and fell below the moving average line.
If this kind of sell signal appears many times in the process of market decline, the sooner you get rid of the better or you can make a short-term hedge.
3. The moving average line is gradually falling. The stock price fluctuates below the moving average line for a period of time and then begins to rise more obviously to the moving average line. When it is close to the moving average line, the stock price immediately declines and declines, which is a signal to sell. .
If such a signal appears after the stock price has fallen to a considerable extent, it should be used as a reference and cannot be sold rashly.
If such a signal appears when the stock price decline is not too large, it can be regarded as the time to sell. This situation should be treated differently.
4. Confirm that the moving average is in the process of rising, the stock price has risen sharply above the moving average, and the deviation from the moving average is getting bigger and bigger.
Calculate the deviation rate. If the deviation rate obtained has reached 30%-50%, at the same time the stock price starts to reverse and decline rapidly and the distance from the moving line is reduced, this is a sell signal. If the deviation rate is too large, there will be signs of a retracement decline. When the stock price falls back to about one-third of the previous increase, the upward trend resumes, and quick short-term operations can also be carried out.