(This article is compiled by the official account Yuesheng Guide (yslc688), 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.)
In the stock market, those who can find the bottom of the stock price and follow up in time are undoubtedly the winners, but this opportunity is hard to come by for most people. From the situation where the trading volume often shrinks when the stock price is at the bottom, it can also be seen that those who can successfully buy to the bottom are the lucky few after all. However, investors can follow up when the main washout ends, so that even if they miss the first wave of market, they can seize the second spring of the main capital stocks. Most major capital stocks have washed the market and shake the position in the middle of the pull-up. Once the main force has been cleaned, it often starts the main upward trend. At this time, investors who cannot make the "bottom" can also make it to the bottom. Generally speaking, there are the following signals at the end of the wash:
(1) downward channel twist.
Some main players used a slight decline when washing the market. During the process of the market hitting a new high, the stock continued to close negatively, building a gentle decline channel. The stock price slowly declined in the channel. One day, a positive line appeared, and the stock price decline was reversed. It slowly gained a foothold, indicating that the wash was coming to an end.
(2) After shrinking the volume, increase the volume.
When the main force washes the market, the stock price will be controlled in a relatively narrow area and repeatedly fluctuate and consolidates. The main force allows the stock price to go with the flow. The trading volume shrinks significantly compared with the previous period. If the washing continues, the trading price will never be effectively narrowed. This is a signal that the main force escapes. The trading volume suddenly increases again one day, indicating that the sleeping main force has begun to wake up and the probability of the main person entering the main person is higher; otherwise, be careful.
(3) does not drop in volume.
The so-called increase in volume does not fall, which refers to the phenomenon that a certain stock has a small buying volume and the largest selling price, but the price never falls. At this time, if you carefully observe the moving average, you will find that the stock price is very close to the 30-day moving average or the 60-day moving average, while other short-term moving averages such as the 5-day, 10-day, and 20-day moving averages are in a bonding state. This phenomenon shows that the stock is in the late stage of collecting main funds or the early stage of pulling up. A large number of selling orders are due to the upward pressure set for collecting chips at low prices, or the short-term floating chip that surges out in the early stage of pulling up. The stock price does not fall is caused by the hidden buying of main funds.
(4) After falling back, build a small platform, and the moving average turns from continuous downward to flat, and then slowly turns upward.
wash-up is manifested as a downward adjustment of the stock price, resulting in a deterioration of the technical pattern. The moving average system sends a sell signal, but the stock price falls to a certain position and is obviously supported. The closing of the market is at a similar position every day. When the wash-up approaches the end, the moving average shows signs of rising.
Whenever the "three short negative lines" appear, it is proved that the main force's wash-up has ended. Buy it quickly without saying a word, and the market will continue to rise in the future!
"three short negative lines". Although this K-line combination pattern seems to have a sharp decline from the surface, excessive decline is a huge consumption of short energy. When the short energy is exhausted, the stock price is very likely to bottom out.
Technical key points:
1. Jump downward and open low for three consecutive days;
2. Close the negative line for three consecutive days.
stock price is very likely to bottom out, and then there is a wave of upward trend. Therefore, at this time, the holders should not be in a hurry to clear the position. Continue to observe for one or two days and wait for the opportunity. If the market improves, they can continue to hold positions or even increase positions; the waiters should pay more attention to this situation.
Case 1:
Guyue Longshan (600059) On June 16, 2016, there was a three-short negative line, and later the stock price continued to rise
0000000. The increase went to: 96%
Case 2:
Guodian Nanzi (60 0268) On November 26, 2016, there was a three-short negative line, ushering in a bottoming rebound, and the rise of
rose to: 30%
Although the three-short negative line is a relatively strong rebound signal, the final decline is unfathomable. You need to be very cautious when discovering this K-line combination. Don’t easily grab the rebound, especially when the price or index has just fallen and the decline is not large, do not enter the market easily to avoid being hurt by the inertia decline of the price or index.
Common washing methods for the main force:
① Pressure washing, which is the so-called smashing of the market. This is the usual technique used by the main force, which can absorb funds at low levels very well. If the stock price is lowered, retail investors will start selling because of panic. Profitable orders will retain profits, trap the market and cut the losses, and the chips will be quietly sucked in by the main force. A complete psychological warfare. Generally, after a long-term sideways at the bottom and a small pull-up market occurs, the main force begins to use this technique. During the market crash, the volume suddenly shrank and showed a steady trend. Pay attention to the support of key moving averages.
②Side-style washing of the market, the main force has increased significantly after the initial washing of the market, and after the pull-up, it began to fluctuate and do not pull or smash, giving people signs of shipment (the main force also often uses this method to ship, and it needs to be judged differently). The profit-making market sells out chips because of concerns about shipment, and the trapped market cuts its losses and exchanges for stocks because it cannot stand the torture of time. This method generally occurs in a bear market, or at the bottom area of a bear market, and a certain stock does not follow the market to rise but fluctuate and sideways. Still pay attention to key moving average support.
③ Oscillating type of market washing. This market washing method is generally hot money or the main force who has just intervened. It hopes to make quick money, quickly suppress and quickly pull up. The stock price is unstable, combining rise and fall, and constantly fluctuates. However, the center of gravity of the stock price is to keep moving upward, with key moving averages below, and the stock price will not fall below the key moving average when the market is washed.
How to judge the end of the wash market? The first thing is to see the support of the key moving average, whether it will be quickly pulled back after falling to the key moving average. The second thing is to look at the trading volume. When the trading volume begins to shrink, and the market trend is still better, the washing is coming to an end.
Key points for finding buying points at the end of the wash market:
1. Observe the stocks that have been in the pull-up stage recently, have risen a certain amount from the bottom but have not yet seen a sharp pull in volume. That is, stocks that have already had the main force involved but have not yet launched the main upward wave, and are listed as the list of focus.
2. Pay attention to when these stocks will experience obvious flushing and shocking actions. You can wait and see before it appears.
3. Once the market wash is over, investors can intervene when the stock price breaks through the high point before the market wash. It can be seen that the key to this strategy is to be able to correctly judge that the main force is washing the market rather than shipping it.
Of course, the main force's methods are changeable. For example, during the main force's washing process, if there are not many retail investors selling chips, or a large number of retail investors see that it is washing the market and grabbing the market, then the process of smashing the market will be very deep until the chips are forced out. For example, when retail investors suddenly pour in in large numbers during the pull-up process, the time for this pull-up will be shortened, and the main force will send out some goods in advance or wash the market again. Therefore, the main method is also constantly changing according to the situation of retail investors. If you want to follow the dealer, you can only get rid of the thinking patterns of most retail investors.
If this article is helpful to you, you can follow the official account Yuesheng Strategy (yslc688) to join the practical special training camp. More stock technical analysis methods and operation skills are waiting for you to learn!
Statement: This content is provided by Yuesheng Strategy, which does not mean that the Investment Express recognizes its investment views.
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