The Eight Methods of Gan Nanwei (3)
5. The price is running above the moving average, rising sharply for several consecutive days, and it is getting farther and farther away from the moving average, indicating that the buyers of stocks in the near future will make huge profits, and there will be profit-taking selling pressure at any time, and the holdings should be temporarily sold.
6. When the moving average gradually flattens from the rise, and the price falls below the moving average from the upward direction of the moving average, it means that the selling pressure is getting heavier, and the stock should be sold.
7. The price is running below the moving average, and the moving average does not break through the moving average when rebounding, and the moving average slows down, and then there is a downward trend after tending to the level, which is the time to sell.
8. After the price rebounds, it hovers above the moving average, and the moving average continues to fall, so it is advisable to sell the currency you hold.
The third and eighth of the above eight rules are not easy to grasp, and the specific application is more risky.
Before you are familiar with the rules of using moving averages, you can consider giving up using them.
The fourth and fifth are not clear how far the price is from the moving average, which can be solved by referring to the bias ratio.