One hundred short-term strategies (the sixth strategy)
Two lines combined
[Technical pattern]
Buy when the 5-day moving average and the 10-day moving average form a golden cross and both lines turn upward, and sell when the 5-day moving average and the 10-day moving average form a dead cross and both lines turn downward.
[Technical meaning]
The price of the currency has started to rise from a low level, and the large-volume upward breakthrough of the 5-day moving average indicates that the bulls have a slight advantage over the long and short sides. When the price of the currency continues to rise, the 5-day moving average and the 10-day moving average form a golden cross and both lines turn upward, it means that the bulls have taken the initiative and the advantage of the bulls over the shorts is obvious. At this time, you can buy with confidence. On the contrary, the market moves downward from a high position, breaking through the 5-day moving average indicates that the bears have a slight advantage. Continue to move downward, so that the 5-day moving average and the 10-day moving average form an effective dead cross and at the same time rise to level and then turn downward, then the short advantage is obvious, and it is appropriate to sell short at this time.
[Application Tips]
When the currency price reaches the buying conditions, you can place an order in advance before the opening of the second trading day. The order price is about 1% above the closing price of the 10-day moving average of the previous trading day. This position is usually the lowest price of the day, which is the best buying price for short-term or swing trading.
When the currency price reaches the selling conditions, you can place an order in advance about 1% below the closing price of the 10-day moving average of the previous trading day. This position is usually the highest price of the day, which is the best selling price for short-term or swing trading.
Note⚠️
When using the double-line strategy, you must be patient. When the price of the currency stabilizes on the 5-day moving average or stabilizes on the 5-day moving average and the 10-day moving average at the same time, it is advisable to observe temporarily, and buy when the bulls have a more obvious advantage, that is, only when the 5-day moving average and the 10-day moving average are effectively golden crosses, and the 5-day moving average and the 10-day moving average turn upward, can the buying operation be adopted; on the contrary, the selling operation should not be too hasty, and the selling operation can only be adopted when the two conditions are met at the same time to prevent being confused by the main force's washing action.
Here, "patience" is particularly emphasized when applying, mainly to prevent extreme fluctuations in the currency price and the main force's inducement or washing, so it is emphasized that the two conditions must be met at the same time before the corresponding buying or selling operations can be adopted.
