During the National Day holiday, I went back to my hometown and met an old high school classmate. When we got to know each other again, I found out that he had also been trading in cryptocurrencies for many years. Now his account is A9 level. He uses the 5-day line operation method, which has made him what he is today. Lao Jiu used it several times later and found that the operation was indeed simple and effective. Today, I share it with those who are destined to see it.

5-day moving average operation, a few simple steps to teach you how to do it!

Step 1: See the direction of the 5-day moving average

If the 5-day moving average is going up and forming a clear route, this is a "bullish position". At this time, if other lines also follow up, the price of the currency will rise. On the other hand, if the line is going down, it is a "bearish position" and the price will continue to fall.

The 5-day moving average is like a "little guide" that can help us see whether it is rising or falling. It is particularly good at predicting changes in a short period of time.

Step 2: Use the 5-day moving average to trade

The 5-day moving average is particularly important for short-term trading and swing operations. We all call it the "lifeline". If the price of the currency is running above, it is a good target and safe; once it runs below, you should pay attention, the market trend may weaken at any time, and you should consider reducing your position.

When operating, position management is very important. Don't add or reduce positions at will, otherwise the cost will be high, and once the currency price is adjusted, all the previous efforts will be in vain.

Step 3: Find the right time to enter and exit

When you see the big negative line (the line of a big drop) touch the 5-day moving average but not break it, it is a good time to buy. When the price stands on the 5-day moving average, it will probably start to rise.

If the 5-day moving average becomes flat, and it doesn't fall so fiercely, it starts to move up slowly, forming a "long" appearance, this is also a good time to buy. Especially when the trading volume is enlarged, the currency price will soar.

If the price rises too high and is too far away from the 5-day moving average, then you have to be careful, and there may be a correction. At this time, it is best to reduce your position or take the profit and leave.

If it falls below the 5-day moving average and keeps hovering around this line and can't go up, then you have to sell it quickly, otherwise the risk will be great.

Below, Lao Jiu directly made the method into a picture format for your reference and understanding. It is clear at a glance with annotations. If you find it helpful, please share it with more friends
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