I shift when it feels right, depending on what I am trying to do at the time . . . . LOL
For maximum fuel economy, you should upshift as soon as you can, without lugging the engine in the next gear; and postpone downshift as long as possible (or coast in neutral). The idea is to keep the engine RPM's as low as possible, without lugging the engine. The shift point will vary depending on conditions (going up hill you need to hold the lower gear a little longer, going downhill you can upshift sooner) but is probably around 2,000 RPM or a little below.
For maximum acceleration, you want to shift at red line, or very close to it; to drop the engine back down to around the peak of the torque curve or just below it.
I do shift into neutral when I am going down hill or when starting to slow down instead of down shifting. I sometimes do down shift but rarely unless I’m stuck unless I need to which is rare. If I can’t sell the stang I’m going to keep it so I want the engine and clutch to be long lasting.
Downshifting is a lot easier on your engine and clutch than it is your brakes, typically. Especially when decelerating on inclines, unless you're pushing your revs to the moon and courting hardware failure (shifting to first while doing 80 mph is a good example of what NOT to do).
At low speeds, engine braking is often not that beneficial, because the forces involved, and time available are much smaller, so it's not a big deal to use it in stop-and-go traffic.
It's a normal part of driving, whether you have a manual or an automatic, so it's a good thing to learn.
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