Buying the bottom and escaping the top is the ultimate dream of retail investors. Is this dream difficult to realize? There is a saying that those who are difficult to understand are not difficult. As long as the top and bottom are mentioned, there will be some old stock investors who like to say this: the rise does not mean the top and the bottom does not mean the bottom is not mentioned. So is there really no way to identify the top and bottom in the market?
top and bottom can definitely be recognized, there is no doubt about it, but as long as it can be recognized, there will be a stunt that if you can know the top and bottom, you would have made a fortune long ago, and I don’t understand why you made a fortune by knowing the top and bottom? First of all, we need to understand a very simple truth, that is, being able to predict the top is not predict the highest point, and being able to predict the bottom is not predict the lowest point. No one can predict the highest and lowest points.
The top and bottom are both the same area. To give an inappropriate metaphor, when you listen to a person’s accent, you can tell which province, city, county, or even which township the person is, but you can’t tell which village or family it is, but you can tell which place he is probably from.
So it is not difficult for an stock or sector to know whether it reaches the top or exactly. The difficult thing is where the highest price will reach and where the lowest price will be.
, and even if it reaches the top, it does not mean that it will fall and pull back immediately, especially in the previous period when it has a sharp rise. The larger the increase in the previous period, the longer it will take to build the top.
means that when you can predict that the stock price will reach its peak, it does not mean that positive line will not appear in the later stage, and it will not rebound. It just means that there will be a rebound in such a position, but there will be no reversal and will not continue to rise. For example, the liquor sector, I said in July 2021 that it should have reached its peak, but it has fluctuated sideways at this position for a year. Do you think his position is the top, but has it fallen? Moreover, the more important the sector is, the longer it takes for him to build the top.
So don’t say anything else if you know the top bottom, you will get rich early. You bought the bottom, but you did not buy the lowest point, and you don’t know when it will rise to the main upward wave of and . Just like you don’t know when the top will start to fall after the top is formed. You can know that since it has reached the end, the decline will be limited, and there will be repeated fluctuations. Since it has reached the top, the rise will be limited and it will start to fluctuate later.
has said so much to explain to many simple friends. How to identify the obvious top trend?
first requires a significant increase, that is, the space in volume, price, time and space. This space refers to space. Only after a significant increase will the real top be formed, and the main force will start the shipment journey.
When the stock price begins to rise sharply, fluctuations are inevitable, but what you need to pay attention to is that during the fluctuation process, as long as the volume breaks through the previous high point and continues to rise, there is no problem at all. Don’t worry about how high it has risen, and how high it has risen does not matter. It is important whether the fluctuation starts.
. Once the stock price hits a record high during the fluctuation process, it cannot continue to rise. The backhand falls back to the previous fluctuation range again, so you must pay attention to the risks. This is one of the particularly obvious manifestations of opening to bottom out .
Because generally, when breaking through, you need to increase the volume, but after breaking through, it means that the increase in volume is to induce long trends. After a long-term sharp rise, it is basically the performance of the main force starting to ship.
But the more the main force starts to ship, the less it will not fall rapidly and sharply. Generally, it will need to fluctuate repeatedly, but you need to know that you have started to avoid risks. This kind of oscillation will rebound, but you will basically not reversal. And you won’t know how long it will fluctuate in the later stage.
