In the analysis, the five-day and ten-day candlesticks are commonly used technical indicators to judge the short-term trend of the company. Let's take a closer look at what these two ** mean and how to use them.
Definitions: The five-day line, also known as the 5-day**, is the average of the previous 5 days of a certain ** in the market
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The five-day line is usually indicated in white. It reflects the movement of the stock price in the short term, corresponding to the 5-day of the stock price and the 5-day of the index (5MA).
The five-day movement serves three purposes:
In the case of relative stability, choose the one with a steep upward attack line, the speed with a large slope, and the speed of making money is fast.
The attack line turns upwards: Indicates that it contributes to the stock price**.
The line of attack is flat: means that the platform is being sorted out.
The attack line turns downward: Represents contributing to the stock price**.
Definitions: The 10-day line, also known as the 10-day line, is the average of the previous 10 days in the market
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The decamerons are usually indicated in yellow. It reflects the average cost of 10 days.
The 10-day line is an indicator that reflects a one-sided continuous trend. In the case of two poles, there will be a continuous movement along the 10-day for a period of time until the stock price falls below the 10-day.
Signals
If the stock price is below all **, wait and see. If there are signs of bottoming, it is the best time to buy.
If the stock price is above all **, it can be considered that there is no resistance above and is suitable for ** operation.
If the stock price is among all **, it is relatively complicated, and it should be decided to sell ** with other indicators (such as MACD, KDJ, etc.).
In short, the five-day and ten-day lines are commonly used indicators to help us judge the short-term trend of the company. Please be flexible and cautious in your investment.