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.
The rising stage closed the lower shadow line - downward pullback, follow up appropriately
stock price breaks away from the low area. During the upward pullback, the stock price showed a downward pullback trend. As of the closing, the stock price closed a K-line with a lower shadow line. This shows that the stock price has strong ability to take over the lower level, and it is also the main force in shocks and washes the market in and cleans up floating chips.
(1) Principle of pattern formation
In the upward stage, the main force will deliberately and quickly suppress the stock price during the session in order to clear the floating chips in the session. Some investors saw the stock price falling trend and thought that the stage high point was coming and sold and left the market.
During the downward process of stock price, if there are fewer intraday selling, active buying, or strong support from moving averages, the main force will soon lift the stock price again, forming a K-line with a lower shadow line. The K-line that closes the lower shadow line can be a positive line or a negative line.
receives the shadow line to indicate that the stock price has a strong bearing capacity in the downward buying market. After this pattern appears, the main force will often operate based on the floating chips and the downward takingover market. If the stock price trend does not show weakness in the subsequent trading day, it means that the long momentum is still sufficient.
(2) Key points of operation
The stock price appears in the upward channel with a lower shadow K-line pattern, which is usually the main force is washing the market or testing the ability of the stock price to buy at the lower level. The stock price has a consolidation trend and the trading volume must shrink, otherwise it indicates that the stock price will enter a longer adjustment.
Investors can look at the time-sharing chart of the stock price on that day. If during the decline of the stock price, when the stock price fluctuates and falls, investors cannot participate in the operation, and there is a high possibility of adjustments in the future market.
Application example - , the shadow line buying point of real estate (000736),
Figure 1-1 shows the trend of real estate. The stock has been running in the upward channel after a wave of rising market in the previous period.
suddenly fell to the 10-day moving average during the rise and received support. The shrinking volume closed out the K-line with a lower shadow, indicating that the lower level has strong bearing capacity, and the closing stock price still stood above the 5-day moving average , indicating that the long momentum is still strong. During the upward phase, as long as the stock price is above the 5-day moving average and the 5-day moving average is running upward, investors can hold stocks long.
Figure 1-2 shows the trend of medium real estate. On the second trading day of the long lower shadow line, the stock price continued to rise.
The subsequent 5-day moving average gradually ran horizontally. After a brief adjustment, the stock price trend gained support at the 20-day moving average. The stock price continued to rise and gradually rose with a volatile trend.
Application example - AVIC Dynamic Control (000738) lower shadow buying point
Figure 1-3 shows the trend of AVIC Dynamic Control. The stock gradually climbed in the upward channel. On February 9, the stock price of the 5-day moving average was weak. The subsequent trading day, the stock price fell below the 5-day moving average and fell to the 20-day moving average to obtain support. It closed in large volume with a K-line with a lower shadow. After adjustments for several trading days, the stock price reappeared.
In the upward stage, as long as the stock price closes to the K-line with a long lower shadow, there will often be adjustments. Investors can adjust their positions according to the moving average trend and do not blindly look bullish.
has broken through consolidation in the rising stage - resistance breaks through, and the market is bullish in the future
After the stock price rises to a certain extent, the main force conducts a stage of sideways consolidation in order to clear the floating chips in the session. During the stock price fluctuating trend, a positive line will suddenly appear to break through the original fluctuation pattern, and the stock price will gradually rise, and sometimes the stock price will even rise rapidly and sharply.
(1) Principle of Formation
After a wave of rising trends in the previous period, in order to reduce the selling pressure of later pull-up, the main force often cleans up a large number of floating chips accumulated during the session before the stock price enters a rapid pull-up stage.
The main force always keeps the stock price fluctuating repeatedly within a predetermined range. When the stock price reaches the upper limit of the predetermined volatility amplitude of the main force, the main force will suppress the stock price. When the stock price reaches the lower limit of the volatility amplitude predetermined by the main force, the main force will come out to to protect the market and to raise the stock price.
has dropped sharply in the early stage and experienced a certain increase. Investors often lose patience when facing sideways. Some short-term profit-making orders, early trapped orders, and litter-cut orders often sell and exchange stocks.
sideways and washing the market, lacking the enthusiasm of the main force, and the trading volume has shrunk. After a sufficient wash-up, the stock price closed a positive line and broke through the fluctuation platform, and then the main force began to lift the stock price again and entered a new stage of upward growth.
(2) Key points of operation
During the process of shrinking volume and sideways, the trading volume must shrink, otherwise it will be a wave of bottoming out and falling market. The stock price cannot fall below the 60-day moving average , and it must be quickly pulled back even if it falls below.
Investors should not rush to buy during sideways fluctuations. Intervention too early will consume time and patience for holding shares. You can leave the market first and wait and see. After the stock price obtains favorable support from the moving average, the moving average system will gradually overlap, and then intervene appropriately when you are about to choose a direction to break through. When the stock price breaks upward after a period of sideways consolidation trend, it is necessary to break through the high point of the consolidation platform with large volume, otherwise sideways consolidation will occur.
Application Example - Wuhan Zhongshang (000785) Breakthrough sideways buying point
Figure 2-1 shows the trend of Wuhan Zhongshang. After the stock has experienced a wave of upward trend, it began a sideways trend, and the trading volume quickly shrank, falling below the 10-day moving average.
If the stock price rises, it must be coordinated with quantity. Without volume, there will be no big market trends in the stock price. You can exit and wait and see first. If investors want to participate in short-term operations, they should pay attention to the 5-day moving average. Once the 5-day moving average trend turns and the trading volume shrinks, it is a short-term selling point.
When the stock price breaks through the fluctuation platform with a large volume and the stock price is supported by the moving average system and runs upward, it is an obvious buying point. Figure 2-2 shows the trend of Wuhan Zhongshang.
From Figure 2-2, after the stock price shrinks and sideways, the trading volume increases, while the stock price breaks through the previous high of the sideways. The stock price fluctuates sideways during the rise, and the main force is often washing the market. Once the volume breaks through the fluctuating platform, the stock price will usher in a sharp rise.
Application example - Beixin Building Materials (000786) breaks through sideways buying point
Figure 2-3 shows the trend of Beixin Building Materials. After the stock has experienced a wave of upward trend, it began a sideways trend.
's stock price has always remained within a narrow range of 22.5 to 27.5 yuan and repeatedly fluctuated. When the stock price reached 27.5 yuan, the stock price was suppressed and downward.
When the stock price runs around 22.5 yuan, it is supported and rises. The DIF line and DEA line of MACD gradually overlap, and the trading volume narrows, indicating that the stock price will not have a big market trend, and investors can exit and wait and see first.
As the 5-day moving average, 10-day moving average and 20-day moving average gradually overlap, the stock price will inevitably choose the direction of breakthrough. At this time, the trading volume gradually increased. On March 9, MACD's DIF crossed DEA, and the stock price broke through the fluctuating platform. The moving average system then showed a bullish arrangement, indicating that the current stock price trend has entered a pull-up stage. The positive line that breaks through the consolidation is often an ideal buying point.
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