After the opening, the price surged, followed by a drop below the average price line. Then, the price line continuously oscillates above and below the average price line, which is a typical volatile trend. When the price line drops below the average price line and rebounds near it, failing to break through again, and stays below the average price line while the average price line slopes downward, the market may begin to decline.
☕
At this time, based on the position of the price line and the average price line, one can determine that the current market belongs to a weak downward trend. In such a market, one should short on rallies; as long as the price rebounds near the average price line, one should short. The stop-loss point can be set at the position of the average price line; as long as the price rebounds and breaks through the average price line, the short position should be closed to limit losses.