As one of the methods of mass investment and financial management, stock investment has been recognized by investors, and investing in the stock market has become a fashion. Investors all want to make a lot of money in the stock market, but as an investment, there will be losses if you make a profit, and the proportion of losses is often relatively large. Perhaps some investors believe that making money in the stock market is nothing more than buying low and selling high, and then repeating operations to make continuous profits. This seems to make sense and correct. However, the actual situation is not the case. Many times, what you buy is not the low point but sells at the low point; you don’t sell when you should sell, and don’t buy when you should buy.
The reason for investment mistakes is that investors do not know how to grasp the buying and selling points. In other words, investors do not have a clear concept of when to buy or sell, and there is no reasonable stop loss and take-profit plan, which is very dangerous in the stock market. In addition to paying attention to the numbers that change at all times on the books, more importantly, we should pay attention to the risks and opportunities that come at any time, that is, the prompt signals of buying points and selling points. Only in this way can we be at ease, relaxed and stable in the stock market, and achieve stable profits.
Why does the bottom daily limit often release huge amounts? Because stocks are consolidating at the bottom in stages, most of the chips are concentrated at the bottom. If one day directly hits the daily limit, it means that all the chips below will make a profit, and there will be a need to cash in on the lurking market, so the selling pressure is very high.
Many monster stocks have the first few daily limit rises at the bottom, and they are basically bad. The bad board is due to the big differences between the bulls and bears. As individual stocks rise and gain recognition from more investors, the differences between long and short people gradually decrease and gradually tend to be consistent. Finally, they will accelerate the shrinking volume board to reach the top.
After all, monster stocks are a minority, and most individual stocks have a huge daily limit at the bottom, which is easy to open low in the morning of the next day. Short-term fluctuations in stock prices are driven by emotions. Market sentiment is high. There are many funds engaged in short-term trading, and the probability of a premium on the next day when the daily limit is high. However, A shares bears long and bulls short, and the market sentiment is not much time to rise, which is about 2/10. Under normal circumstances, only 2/10 of the year will have market conditions, and the rest of the time fluctuates. So in the long run, the next day when the huge daily limit is hit, the probability of a low opening is relatively high. The high volume limit at the bottom of
is often a signal of starting, but if a huge amount is released, you need to think about it in a comprehensive way. It is possible that the main force closed the board for shipment, it is possible that the market sentiment was relatively poor that day, and most individual stocks fell and rose against the trend, which naturally brought about an extremely large selling pressure. It is also possible that individual stocks were riding on hot spots to speculate, and hot money ignited the stock price, and the main force and profit-taking markets sold their stocks with the trend.
In summary, the huge limit up at the bottom is caused by excessive selling pressure. If the bulls are relatively low in buying in the early trading the next day, it is likely to open lower. If it is better, it will pull up, giving you a chance to escape. If the market sentiment is poor, you may continue to smash down.
1. Large-volume yin pregnancy line combination
Shape and market meaning Interpretation
pregnancy line is a double-day K-line combination pattern with long front and short back. The highest price of the short K-line behind is lower than the highest price of the long K-line in the front, and the lowest price of the short K-line behind is higher than the lowest price of the long K-line in the front, which makes the latter K-line like "pregnant" in the front, so it is named the pregnancy line.
In pregnancy line shape , if the front long K-line is a positive line and the back short K-line is a negative line, then this pregnancy line is called "yin pregnancy line". The Yin pregnancy line often appears in the high area after a wave of upward trend. If the Yin pregnancy line pattern appears with volume amplification, it means that the short side sells heavily and the bull side is unable to attack upward, indicating that a wave of pullbacks and downward trend is about to appear.
Case: Qiangli New Materials
As shown in Figure 1-1 Qiangli New Materials trend chart, the individual stocks have always been very stable and there is no short-term surge. It is only analyzed from the daily K-line chart, and it is difficult to predict the short-term decline of the stock price, but the trading volume pattern at this time has undergone abnormal movement.As noted in the chart, during the consolidation process of high points, a large volume of negative pregnancy line combination appeared. The volume capacity in the past two days was abnormally amplified, which was a signal that the market selling pressure suddenly increased and the bulls were unable to push it up, which also indicates that the stock price peaked and fell. During operation, since the cumulative increase in the mid-term of individual stocks is large, in terms of medium and short-term, they should be sold at this time to avoid risks.
2. volume rise medium probe volume
pattern and market meaning interpretation
large volume rise
large volume rise temistically refers to individual stocks rising in a large volume. During the rise, a certain trading day further amplified volume energy occurred, and the next day, the volume energy recovered as before. The emergence of
probe volume energy indicates that the medium- and short-term rise of individual stocks is at the end of their strength, and the forces of the bulls have been consumed greatly. If the short-term rise is large and the rise speed is faster, once the probe volume energy appears, it is often the time when the short-term rise is reached and the short-term falls; if the previous rise is relatively stable, although it can still rise further in the following days, the cornerstone of the rise is no longer solid, and there is a risk of reversal and downward trend at any time.
Case: Nanjing Port
As shown in Figure 1-2 Nanjing Port trend chart, individual stocks broke through the consolidation range upward with a stable small and medium positive line, but there was a probe-type volume energy at the point where the cumulative increase was not large, indicating that the foundation of this round of breakthrough market is not solid. In the following trading days, we should gradually reduce our positions and leave the market and lock in profits.
Case: Xinbang Pharmaceutical
As shown in Figure 1-3 Xinbang Pharmaceutical's trend chart, compared with the previous case, the short-term rise of this stock is relatively rapid and has a large increase. The probe-type volume energy that appears at this time is mostly a signal that the short-term peak is the signal, especially once stagnates the next day, you should sell it decisively during operation.
3. Step by step incremental increase in volume
Interpretation of pattern and market meaning
Step incremental increase in volume refers to the continuous closing of individual stocks at the positive line during a rapid rise, and the trading volume shows the incremental characteristics of step-by-step magnification. The so-called step-by-step magnification is that the volume energy of the next trading day is slightly higher than the previous trading day, and the average volume line of on the 5th day shows a rapid rise.
Incremental increase in volume is a local increase in volume pattern that can only last for several trading days. Incremental increase in volume is often related to the rapid development of the price trend in a certain direction. It is the continuous acceleration of buying inflow (incremental increase in volume accompanied by stock price rises simultaneously), or the accelerated selling of selling (increasing increase in volume accompanied by stock price declines simultaneously). In real-time operations, we should pay attention to the peak of the volume energy under the increasing increase in volume pattern, because this is often also a phased high or phased low point of individual stocks.
Case: Nanfeng Chemical
As shown in Figure 1-4 Nanfeng Chemical's trend chart, in a wave of stocks fluctuating and hitting a short-term high, an increasing volume pattern with four consecutive days of magnification and increasing gradually. On the fourth trading day, the stock closed at the long positive line, and the volume reached a recent high. Based on the historical performance of individual stocks, this increase in volume is difficult to amplify again, and the short-term upward attack is accelerating. During operation, you can appropriately reduce positions and lock in profits on the same day.
Case: Siyuan Electric
As shown in Figure 1-5 Siyuan Electric's trend chart, in a wave of rebound trend, individual stocks rose for five consecutive days and increased volume energy. At this time, the volume energy cannot be further amplified, which is a signal of the end of the rebound. During the operation, if we buy at the bottom of and win the rebound in the short term, we should sell at this time.
