(This article is compiled by the official account Yuesheng Strategy (yslc188), for reference only and does not constitute operational advice. If you operate by yourself, pay attention to position control and risk at your own risk.)
A stock hits the daily limit or hits the daily limit generally reflects rapid and extreme changes in market sentiment. Under normal circumstances, the stock price will not hit the daily limit for no reason. In the event that there is no negative news in individual stocks, there are generally three reasons that will cause individual stocks to hit the daily limit :
1. Systemic risk
Although there is no negative news in individual stocks, the market has plummeted, which is called systemic risk. At this time, all stocks will be affected and fall. The worse the market falls, the more individual stocks will hit the limit, because most investors are panicking and following the trend. For example, in the stock market crash in 2015, thousands of stocks hit the limit several times, and these stocks themselves have no negative news.
For this situation, it is important to analyze the overall market environment and see if the short-term sharp drop in the market is just an adjustment or the trend has changed. For example, if it occurs at the low relative valuation level of the market, it is difficult to sustain a big rise and fall. Then the impact on individual stocks is also short-term. You can choose whether to replenish positions based on the company's fundamentals. If it occurs at a high level and causes systemic risks, whether the factors (such as liquidity factors) can improve in the short term. If it is possible, you should replenish positions. If it is not possible, you should stop losses decisively.
2. Profit retrieval pressure
A stock is also likely to hit the limit after a continuous surge. This is because continuous surge will cause huge profits to occur in stocks. During the stage when the stock price remains strongly rising, the holders choose to lock their positions and take a look due to greed. When the stock price suddenly cannot rise, a large number of profit-making orders will be sold, which will trigger a big drop and a limit down without negative news.
For this situation, it depends on the strength of the stock price and the logic of causing the rise. If the stock price is only driven by short-term funds, it may be difficult to catch it after the profit-taking order escapes. However, if the stock is a strong sector in a phased manner, some stocks suddenly hit the limit after a continuous surge, and will continue to rise after a short-term adjustment and wash-up. You can choose to replenish your positions at important moving averages such as the 20-day moving average or the 30-day moving average, and then exit after rising again.
3. The stock market flees
If the market neither shows a systematic sell-off, and this stock has not experienced continuous surges in the short term, and is in a stage of fluctuation, but it occurs at a relatively high level, then it is generally the stock market fleeing. This type of stock is generally operated by a market maker with strong financial strength. The stock is raised by steps such as building positions, pulling up, washing the market, and pulling up again, but the actual transaction is not active, and the turnover rate is extremely low. The market maker can ship the goods by jumping up and down at a high level.
For this kind of stock escape trend, there will generally be a big decline in the later stage, and it can clear the position and finally clear the position to avoid risks. However, one thing to note is that when the stock market hits the limit at a high level, it is mostly a flash crash trend, that is, the stock price suddenly plunges and quickly falls to the limit, or directly hits the limit, and then hits the limit continuously. If you cannot stop the loss in time, you can only watch the decline. Therefore, you must be careful about stocks with high-level stocks. After the stock price rises sharply, the turnover rate is extremely low, and stocks with long upper shadows or long lower shadows are the obvious characteristics of stocks.
What is the stop loss position?
stop loss position refers to the timely cut off the position when the loss reaches the predetermined position on a certain day to avoid greater losses. The purpose is to limit losses to a smaller range when investment errors are made.
How do we set the stop loss position?
1. Loss degree setting
For example: Stop loss when the current price is 5% or 10% lower than the buying price, usually the stop loss level of speculative short-term buying is set between 2%-3%, while the downward ratio of investment long-term buying is set is relatively large.
2. Set the stop loss position according to the support level of technical indicators
For example: the 10-day, 30-day or 125-day moving average is the stop loss position; when the MACD first appears in green columnar line;
is set according to key positions of great significance in history, such as: the position of major policies issued in history.??
3. Set the tangent of the reference
trend line according to the K-line pattern; the neckline position of the head shape such as the head shape such as shoulder top or arc top; the lower rail of the upward channel of
; the edge of the gap of
, etc.
4. Set
according to the integer price of the stock price, for example: 10 yuan; 20 yuan. This method does not have much scientific basis, mainly because integer prices have certain support and resistance to investors' psychology.
5. Set
according to the transaction-intensive area, for example: the peak area of mobile cost distribution. Because the trading-intensive area will have direct support and resistance to the stock price. After a bottom is broken down, it will often transform from the original strong support area to a strong resistance area.
6. The psychological price set according to your own experience is used as the stop loss position.
When investors pay attention to a certain stock for a long time and have a deep understanding of the nature of the stock, the stop loss position set according to the psychological price is often very effective.
Stop loss skills:
1. Stop loss method after confirmation of false breakthrough.
2, Stop loss method of falling below the 60-day moving average
3, MACD air oil leakage stop loss method.
4. Spindle line breaking stop loss method.
5, high double negative line falling stop loss method.
See through the formula for buying the bottom and escaping the top stocks for the main force
If you have been in the market for many years and still don’t know how to select stocks, you might as well try the “main force escaping the bottom and escaping the top stock selection device” to find the bottom of the low point and find the top and exit the market in time; copying the formula code will inevitably cause some format errors. If it cannot be imported successfully, you can follow Yuesheng strategy to get the source code!
Main market funds enter: IF(VB=0,VB,0), COLORRED;
Selling critical: STICKLINE(Trend line 90 AND Trend line REF (trend line, 1), 100, 95, 15, 1), COLORFFFF00;
top clearance: FILTER (trend line 90 AND Trend line
midline:=EMA(X, 13);
KBBB3:=C/REF(C, 1)1+0.01*9.00;
KCCC3:=middle line/long line 11+0.01*20.00;
KAAA3 AND KBBB3 AND KCCC3 AND TJ5;
STICKLINE(low golden cross , 0, 0.08, 6, 0), COLORFF00FF;
DRAWTEXT(low gigantic cross, 0.16, ' low gigantic cross'), COLORWHITE;
JCCOUNT:=COUNT(CROSS(DIF,DEA), BARSLAST(DEA=0));
Secondary golden cross:=CROSS(DIF,DEA) AND DEA0 AND COUNT(JCCOUNT=2,21)=1;
STICKLINE(secondary golden cross, 0, 0.06, 6, 0),COLORFFCC00;
DRAWTEXT( peak clearance, 90, 'escape top'),COLORYELLOW; CC:=(trend line=90 AND V12) AND FILTER((trend line=90 AND V12), 10);
STICKLINE(large market funds enter AND Trend line 13, 0, 30, 10, 0),COLORRED; STICKLINE(large market funds withdraw AND Trend line 90, 0, 30, 10, 0), COLORGREEN;
The market funds are withdrawn: IF(VBV11:=3*SMA((C-LLV(L, 55))/(HHV(H, 55)-LLV(L, 55))*100, 5, 1)-2*SMA(SMA((C-LLV(L, 55))/(HHV(H, 55)-LLV(L, 55))*100, 5, 1), 3, 1);
The formula code is copied and caused some format errors. If it cannot be imported successfully, you can ask me to get the source code! If you want to know more about the current operation skills and formula codes of A-shares, or if you have any doubts, you can follow the official account Yuesheng Strategy (yslc188) to obtain the most important investment information and stock technical analysis methods, and there is a steady stream of dry goods!
bottom 4 big buying pattern:
1. Dynamic zone
After the stock price fell for a long time, the short momentum disappeared, and the stock price began to fluctuate slightly in the bottom area. As the trading volume was moderately amplified, the 55-day line was slowly straightened, and the 13-day line also began to turn upward, and the bottom of the stock price continued to move upward, indicating that incremental funds were quietly absorbed. The 13-day moving average has fallen from flat to slow, and then crossing the 55-day line. This process is called a dynamic zone. Only when the stock price passes through the dynamic zone can it be possible to see a wave of rising market.
We can see that the stock has experienced a large market decline in the early stage. The volume below is in the ground volume for a long time. After an infinite shortfall, individual stocks slowly stopped falling and stabilized. The 13-day moving average changed from a downward trend to a flattening trend, but we observed that the volume below has not changed significantly. Therefore, this is what we should continue to observe. As the volume energy suddenly accumulates and amplifies, the index has also remained above the 13-day moving average. When the 13-day moving average and the 55-day moving average form a golden cross, we see that the cross between the two moving averages of point A has not fallen below, which is a good time for entering the market.
2. Sun and Moon Combination
The stock price began to fall from a significant high point, the trading volume shrank extremely, the 13-day moving average decline slowed down, and the stock price jumped down at the end of the decline, closing down the flat bottom or slightly lower shadow negative line , but the stock price stopped falling and rebounded the next day, indicating that the bottom of the stock price has been discovered. We call the two side-by-side Yin and Yang K-lines appearing in the bottom area the sun and Moon Combination.
After a long period of decline, the participants in the stocks were almost in a high loss, but the volume below did not amplify, which indicates that the floating chips in the stocks have been thrown out, and the rest is firm holders. We saw that point A hit a new low, and after a slight decline the next day, it quickly rose, closing a small positive line against the small negative line of the previous day. With the opening and closing of point C on the second day, it indicates that the market has completed the bottoming out action, and the subsequent pull-up market is followed. Therefore, when a small positive line appears at a low level, it must be combined with the changes in the market on the second day to determine whether the stock market has a trend of stopping and rebounding.
3. After a wave of decline, the stock price suddenly jumped low and then quickly rose to form a long positive line that opened low and closed high. This is an obvious sign of the stock price turning trend and a good opportunity to enter the market. We call this long positive line that opened low and closed high and called the long positive line that was killed low and closed.
We can see that before point A appeared, although the index rebounded, its strength was limited, and the volume below did not show a significant amplification. Therefore, we should not blindly chase the rise. When the index fell back again, many people think that this wave of market has ended, or there is a continued bottoming out. From the figure, we see that the day before point A appeared, the index formed a gap-opening market. Although there was a pull-up move during the trading session, it was suppressed. The next day, the lower opening again the next day greatly aggravated the panic among investors. Therefore, many people chose to sell, while the dealer directly picked up cheap chips at the low level, and then directly hit the daily limit that day. This action was very straightforward. As the gap-opening at point B the next day, it directly stood above the low high point, which was a signal to start a new round of market conditions.
4. After a long-term decline, the stock price chose to break downward, showing a trend of volume acceleration, but the last negative line left a long lower shadow line, indicating that the bottom is strongly carried. The next day, the stock price opened low and closed low, but no longer hit a new low. The trading volume below shrank, indicating that the selling market was exhausted. We call the small negative line hidden in the shadow of the underside of the yin line the golden house hidden beauty.
We can see that after the index fell for a long time, a stock with a long lower shadow line was formed at point A, and continued to fall the next day, but we can see that the index did not hit a new low, which means that there is a certain amount of capital acceptance in this place. With the appearance of point C on the third day, we found that its closing price had almost reached the opening price of point B, forming a positive and negative market. The subsequent volume-leap opening high is the emergence of a stop-fall and rising market.
Several principles for stock trading, I hope it will be helpful to everyone
1 Market principles
Try to short or light positions when the market falls, don’t be greedy when the market consolidation, consider closing the position if there is a profit of 10% or less, and choose the strongest individual stock to hold when the market rises.
2 sector principles
When the market rises, individual stocks show the characteristics of sector rounds of rise. Judging the mainstream sectors in a certain period, and selecting leaders in the sector to catch up.Remember, funds have the characteristics of profit-taking, there are no eternal hot spots, try to seek new hot spots, and quickly intervene at the start.
3Value Principle
Choose stocks with value growth in the next two years, and value growth in the next year at least. Remember the value law of price fluctuations around value, which is equivalent to the wave theory and Gann theory, which is the law of nature.
4 Funding Principle
funds flow into the stock, beware of profit-taking of stocks.
5 Trend Principle
stock price shows an upward fluctuation trend.
6 Fund Management
Cash is always the safest. Regular clearance of positions to ensure the initiative of funds, wait for opportunities, and choose the right time to rebuild positions.
7 resonance principle
value trend is upward, price trend is upward, stock prices are short-term, medium-term and long-term trends are upward. Stocks with impeccable fundamentals and technical aspects are the best stocks.
8 Trying to avoid floating losses
0 is a painful thing to be trapped, and even if you are temporarily trapped, it is unbearable. Correctly choosing buying points and selling points is a good way to avoid being trapped. Write down the reasons for buying and selling, and strictly abide by buying and selling disciplines, which can ensure the initiative of funds, although sometimes you have to pay a small loss. Specifically, the theoretical basis for long-term investment is that prices fluctuate around value, and value guides funds and determines the long-term trend of stock prices. You should judge the value and growth of the stock, choose a cold bottom to intervene, track the changes in the value of individual stocks, wait patiently, and exchange time for space; short-term investment focuses on trends, and if the trend changes, stop loss. Do not turn short-term into long-term lines, so that losses can be expanded without restrictions. The mid-line should intervene at the 20th or 30th day moving average and be eliminated when the moving average system is destroyed.
9 Offensive band Investing
strives to find better stocks to replace holdings in your hands.
If you are interested in stock market investment experience and technical analysis, or want to communicate with more investors, you may wish to follow our official account: Yuesheng Strategy (yslc188), which has a lot of practical information!
(The above content is for reference only and does not constitute operational suggestions. If you operate by yourself, pay attention to position control and risk at your own risk.)
Statement: This content is provided by the official account Yuesheng Strategy (yslc188), and does not mean that the investment news approves its investment views.
