The legendary woman who was reborn from the ashes

In the stock market, the 120-day moving average plays a pivotal role. It is not only an important reference for the mid-term trend of stock prices, but also a powerful tool for investors to capture strong stocks and avoid risks. Analyzing the secrets of the 120-day daily limit helps investors capture more investment opportunities in the stock market.

In stock technical analysis, the 120-day moving average, also known as the "half-year line", is an important reference line. It represents the average market cost of the past 120 trading days and reflects the mid-term trend of stock prices. Therefore, it is regarded by investors as an important reference for mid-term operations.

When the stock price is above the 120-day moving average, it indicates that the market is in a strong stage and investors can actively participate; when the stock price is below the 120-day moving average, it indicates that the market is in a weak stage and investors should operate with caution.

The 120-day moving average is characterized by its stability and trend. Since it covers a time span of half a year, it can more accurately reflect the long-term trend of stock prices.

At the same time, the 120-day moving average also has a strong support and pressure effect. When the stock price fluctuates near the 120-day moving average, once it breaks through the moving average, it often means that the stock price will start a new up or down trend.

The position relationship between the stock price and the 120-day moving average is also an important basis for judging the mid-term trend. When the stock price is above the 120-day moving average, it indicates that the mid-term cost of the market has been exceeded by the stock price and the mid-term trend is upward.

If the stock price pulls back to the 120-day moving average and gets support, it is often a good time to buy in the medium term. On the contrary, when the stock price runs below the 120-day moving average, it indicates that the mid-term cost of the market is higher than the stock price and the mid-term trend is downward. Even if the stock price rebounds, once it touches the 120-day moving average, it will often be under pressure and pull back.

The relationship between the 120-day moving average and other moving averages is also worth paying attention to. When the stock price is above the 10-day, 20-day, and 120-day moving averages at the same time, it indicates that the short-term, medium-term, and long-term trends are all upward, which is an excellent signal for mid-term buying. On the contrary, when the stock price falls below these moving averages, the mid-term trend may weaken, and investors should operate with caution.

Identification and operation strategy of 120 daily limit

120 daily limit refers to the trend that the stock price breaks through the 120-day moving average and reaches the daily limit after a long period of adjustment. This trend indicates that the stock price is about to start a new upward trend, which is an important signal for investors to capture strong stocks. When identifying 120 daily limit, investors need to pay attention to the following conditions:

1. Stock price adjustment range and time

Investors need to choose stocks that have undergone large-scale and long-term adjustments as their operating targets. Such stocks have higher rebound potential and are more likely to have a 120-day limit trend.

Generally speaking, stocks with a share price adjustment range of more than 30% and an adjustment period of more than half a year are more ideal.

120. Trend of the -day moving average

Investors need to pay attention to the trend of the 120-day moving average. During the stock price adjustment process, the 120-day moving average shows a downward or horizontal trend. When the stock price begins to bottom out and rebound, the 120-day moving average will gradually turn upward. At this time, investors should pay close attention to the position relationship between the stock price and the 120-day moving average.

(III) Signals of a large volume breakthrough

When the stock price breaks through the corresponding position of the 120-day moving average in intraday trading, investors should buy decisively. The "volume" here refers to the significant increase in trading volume compared with the previous period, indicating that major funds are actively involved.

The increase in stock price when it breaks through the 120-day moving average is also an important reference indicator. Generally speaking, a stock price increase of more than 5% is ideal.

(IV) Opportunities to increase positions when the stock price reaches the daily limit

When the stock price hits the daily limit and is about to be locked, investors can increase their positions. At this time, the stock price has broken through the important resistance level, and the main funds have a strong willingness to go long, and there is a large room for future growth. Investors can increase their positions in time to obtain greater returns.

When using the 120 daily limit strategy, investors also need to pay attention to the following points:

1. Strictly control positions

Although the 120 daily limit has a high success rate, investors still need to remain cautious and avoid blindly chasing high prices. During the operation, positions should be strictly controlled to avoid excessive concentration of risks.

2. Pay attention to the market environment

The market environment has an important impact on the trend of individual stocks. When using the 120 daily limit strategy, investors should pay attention to the trend of the market and the overall atmosphere of the market. When the overall market trend is positive, the success rate of the 120 daily limit is often higher.

3. Setting a stop loss point

In order to avoid potential risks, investors should set a reasonable stop loss point after buying individual stocks. Once the stock price falls below the stop loss point, they should stop the loss in time to avoid further losses.

(IV) Pay attention to the trend of major funds

The movement of the main funds has an important impact on the trend of individual stocks. When using the 120-day limit strategy, investors should pay close attention to the movement of the main funds in order to seize market opportunities in a timely manner.

The 120 daily limit strategy is an effective way to capture strong stocks. It combines the mid-term trend of stock prices and short-term explosive power, providing investors with valuable investment opportunities.

However, no investment strategy is omnipotent, and investors still need to remain cautious when using it and make comprehensive judgments based on the market environment and individual stock conditions.

As the stock market continues to develop and improve, investors' selection and operation strategies for individual stocks will become more and more diversified. As a classic investment method, the 120 daily limit strategy will continue to play an important role in the stock market.

With the continuous advancement of technology and the increasing abundance of data, investors will have more tools and means to optimize and improve this strategy.

After a long period of stock price adjustment, the market is often filled with pessimism. At this time, once the stock price breaks through the 120-day moving average with large volume, it is regarded as a turning point in market psychology. Investors begin to realize that the stock has the potential to strengthen in the medium term, and follow up and buy, pushing the stock price further up.

In the process of the 120-day limit, the movement of the main funds played a key role. The main funds usually gradually complete the position building during the stock price adjustment process, and start to push up the stock price when the stock price stabilizes and rebounds.

When the stock price breaks through the 120-day moving average, the main funds will increase their buying power to push the stock price up. This interpretation of the capital movement helps us better understand the formation mechanism of the 120-day limit.

From a technical perspective, the 120-day moving average, as an important reference for the mid-term trend of stock prices, has a strong support and pressure effect. When the stock price breaks through the 120-day moving average, it often means that the technical pressure has been broken and the stock price is expected to continue to rise.

Although the 120-day moving average has important reference value in judging the mid-line trend, it does not mean that it can fully predict the future trend.

The fluctuation of the stock market is affected by many factors, including but not limited to the macroeconomic environment, policy changes, company performance, etc. Therefore, in actual operations, investors should consider various factors comprehensively and analyze them in combination with other technical indicators and fundamental information to improve the accuracy of investment decisions.

Investors should pay special attention to stocks that have pulled back from the 120-day moving average. If the stock price is strongly supported by the 120-day moving average during the pullback and rebounds, it may be an opportunity to buy in the medium term.

If the stock price falls below the 120-day moving average multiple times and fails to rebound quickly, it may indicate that the medium-term trend has weakened and investors should be cautious.

As an important reference for the mid-term trend of stock prices, the 120-day moving average is of great significance in stock technical analysis. Investors should make full use of this tool and conduct comprehensive analysis in combination with other technical indicators and fundamental information to make more accurate and rational investment decisions.

When using the 120-day moving average to analyze mid-term trends, investors should maintain an objective and rational attitude and apply it flexibly based on actual conditions.

On the road of stock market investment, investors should continue to learn and explore, accumulate experience and lessons. I believe that through unremitting efforts and continuous improvement, we will be able to gain more benefits and growth in the stock market.