(This article is compiled by the official account Yuesheng Research (yslc927yj), 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.)
Looking at the K-line pattern, we call the two Yins and one Yang pattern called empty square cannon , and judge the selling point by the empty square cannon.
The principle of forming short-square gun
When investors can identify the short-square gun pattern, this is the bearish future market signal. The principle of forming a short-square cannon is that on the first day the main force shipped a large amount of goods to suppress the stock price and form a large negative line. Due to the inertial rise of the stock price, the closing of the positive line the next day is driven by the buying. On the third day, the main force shipped a large amount of goods again to form a larger negative line. This is the short-square cannon with two Yins and one Yang.
Pattern type
1. On the first day, the stock price fell and closed the negative line, the second day rose and closed the positive line, and on the third day fell and closed the negative line, which is the horizontal fluctuation of the stock price.
2. The three tops of the three K-lines are horizontal, and the three bottoms are also horizontal.
3. The two yin and one yang characteristics with strong trends are: three K-lines are showing a downward trend, the top of the yin line should be as low as possible, and the entity of the yang line should be as short as possible.
practical cases
Rukuncai Technology (603826) closed a standard short-square cannon combination of two negatives and one positive on October 12, 13 and 16, 2017, and then the stock price fluctuated downward. During this period, the stock price tried to rebound, but none of them changed the downward trend. Each rebound high point became the last opportunity for shipment. Therefore, once the stocks in your hand rise to a high level, if you appear, you must decisively get out. What should I do when I encounter an empty square cannon?
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号号号号号号号号号, because empty square cannons are generally top-level features. Even if you realize it later and do not sell it on the fourth day, you must immediately exit and wait and see after the stock price rebounds. Because, this is the last opportunity to sell.
How to identify short-side cannons?
1. A short-side cannon appears during the decline of stocks, which is a signal of decline relay; a signal of peak appears during the rise of stocks.
2. There is no need for a perfect cooperation in trading volume to form a short square cannon. Just have two negative and one positive form, and you are considering elimination.
3. The negative line in the empty square cannon can be a continuous small positive line or a cross star, but the last negative line must eat all the small positive lines in front.
Notes
1. The short gun pattern can appear in the upward trend or in the downward trend. It appears in the rise, which is a peak signal; it appears in the fall, which is a relay pattern that continues to bearish.
2. In the process of forming a blank cannon, there is no inevitable requirement for volume coordination.
3. The positive line in the middle of the short-square cannon pattern can be a cross star positive line, sometimes it can be several small positive lines, and the second negative line must swallow the previous few small positive lines, which is also bearish.
Finally, after the short gun appears, the stock price may rebound slightly. Investors must not intervene in the middle rebound process in order to seek small profits, which violates the core trading concept of "trend is king".
In addition, the smaller the volume of the small positive line in the middle rebound, the weaker the strength of the bulls, and the greater the momentum for the decline in the future market. Through the above content, everyone has an in-depth understanding of air guns and hopes to avoid risks in the future.From the official account The legend of A-share market
How to select stocks in the market volatile market can make sure to make profits without losing money? The following editor has summarized two major composite stock selection methods for you:
stock selection method 1: Double bottom technology pattern
The continuous decline of the stock price makes investors who hold stocks feel that the price is too low and reluctant to sell, while other investors try to buy because of the low price of oversold , so the stock price rebounds, and the first low point appears at this time; and when the stock price rises to a certain level At that time, short-term speculative buyers took profits earlier, and those who held the goods in the market fell also sold off when the price rebounded, so the stock price fell again. However, investors who are confident in the future felt that they missed the opportunity to buy the last low, so they immediately followed up when the stock price fell to the nearest of the last low. When more and more investors bought, the power of more supply was needed to drive the stock price to rise, so the second low point appeared, and the position of the second low point was generally higher than the previous low point. The moving trajectory of the stock price during this period was like the word W, which is what is technically called "double bottom", also known as "W" bottom.
Stock Selection Method 2: Confrontation with Market Falling
When the market forms a downward trend and keeps falling, when it falls to the end, a certain stock still maintains a sideways and firm pattern. Although it has been adjusted before due to the adjustment of the market, the adjustment range is always limited. And because the main force is optimistic about the stock's future market, it continues to appear that every time it falls to its valuation position, it will increase its position and buy again. The more the market plunges in the market, the more the stocks that show strong resistance to declines, indicating that the main force of the stock is very optimistic about its future market performance, so it keeps protecting the market at key price points to ensure that its technical pattern does not become too bad, which also facilitates the rapid rise of the market when it rebounds.
operation points:
(1) Generally, the second bottom point of the double bottom is slightly higher than the first bottom point, because the foresighted investors have started to buy during the second fall, which prevents the stock price from falling back to the last low point again. If the second low point appears at this time, the market continues to fall, which is in line with the technical principle of the stock selection method against the market, forming a double resonance effect, and the effect is better!
(2) The double bottom is not necessarily a reversal signal, but sometimes it will be a consolidation pattern. This depends on the time difference between the two troughs. It is usually common for two low points to form a time interval of more than one month, but it is usually more than 3 months. Whether a reversal can be formed depends on the situation of the market. If the market continues to oversold and forms a large rebound, then such individual stocks are very likely to form a reversal.
(3) The trading volume at the second bottom of the double bottom is very low, but when breaking through the neckline, the trading volume must be increased to confirm. This is also in line with the requirements of flying knife against the technical pressure of breaking through the large-scale stock selection method when starting the market.
(4) Usually after breaking through the neckline, a brief reverse direction will occur, which is called a pullback. As long as the pullback is not lower than the neckline, the pattern will still be effective. The Flying Knife Market's method of opposing stock selection should also be frequently used to choose the fundamentals of the stock. We must choose stocks with outstanding fundamentals, distinctive speculation themes, or stocks with sector resonance and start market effects. The stocks in the picture are coal stocks. As oil prices continue to rise, the market's attention to rare and scarce energy will inevitably be reflected in the stock price. At the same time, the stock also implies the theme of new energy methanol fuel.
If this article is helpful to you, you can follow the official account Yuesheng Research (yslc927yj), and more future market operations and stock technical analysis methods are waiting for you to learn!
(The above content is for reference only and does not constitute operation suggestions. If you operate by yourself, pay attention to position control and risk at your own risk.)
Statement: This content is provided by Yuesheng Research (yslc927yj), which does not mean that the investment news recognizes its investment views.
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