Whenever we can't bear it anymore, it's often after the stock price has dropped significantly for a period of time. In probability, there is a high possibility that the stock price will form a relatively bottom area at this time. So, even if we have to 'cut meat', we should reduce some losses to some extent after the stock price rebounds, even though it may never return to our original buying price. To avoid "cutting" at the relative bottom, it is necessary to carefully observe the trading situation during the trading session before selling, to confirm whether the main force will raise the stock price in the near future, because a considerable number of stocks have some signs before the market rises. What are the signs before the stock price starts?
Stock investors need to grasp the following four signs:
1. Larger sales orders were consumed.
Although trading is light, there will always be some larger sell orders. If the listing price of these large sell orders is close to the transaction price and will be eaten up by active buy orders, then this is a sign before the main force rises. As is well known, after the stock price rises, the main force is most afraid of those profit taking orders that are bought at relatively low levels. Therefore, as long as the main force's financial situation allows, they will try their best to consume some larger sell orders before the rise to alleviate the pressure of the stock price rise stage. You can also understand it as the main force completing a relatively small amount of position building task within a small range. Once the stock price rises successfully, these relatively low bought chips become the main force's own profit opportunities. If ordinary investors have excellent trading skills, there is great potential for a rebound in the market at this time.
2. Some non market large orders appeared during the trading session.
For example, in a market with a daily turnover of 300000 shares, there may be orders for 30000 shares, 50000 shares, or even 100000 shares or more, and the price of the pending orders is far from the transaction price, often after the third round, and sometimes the orders may be cancelled, giving people a vague feeling.
This large number of orders, due to their distance from the transaction price, have a low possibility of actual trading. Therefore, it may be a deliberate order placed by the main force, with the intention of telling the market that the main force has noticed this stock. Since the main force wants the market to know, the future outcome of the stock price is either an increase or decrease, rather than consolidation. Of course, even if the main force wants the market to believe that the stock price will rise, we cannot rule out the possibility that the stock price will actually fall, unless there are other details that can rule out this. But one thing is for sure, the main force may experience a wave of upward trend before a large number of shipments.
3. A pulse like upward trend appeared during the trading session.
The so-called 'pulse like rise' refers to the sudden departure of stock prices in a relatively short period of time
The overall market trend surged rapidly, then quickly fell back to its original position, accompanied by a slight increase in trading volume but no obvious signs of reversal.
Due to the relatively light trading volume, the main force must have not participated in trading for a period of time and has no feeling towards the market. Therefore, before officially rising, the main force will try to push the stock price first, that is, "trial trading", to see the market's reaction. There is also a possibility that the main force wants to take more chips at the current price by pushing upwards in order to attract a "meat cutting" market, and then choose the appropriate time to rise. This situation indicates that the main force has relatively sufficient funds and is more confident in the rise of stock prices.
4. In the case of a stable market, individual stocks tend to experience a downward pressure trend during trading, but the market often stabilizes in the end.
This trend is quite torturous, as there is often significant selling pressure during the trading session, causing the stock price to decline step by step, but then rebound at the end of the day. Without a doubt, the direct consequence of this trend is inevitably to attract more "meat cutting" stocks. If there is no external interference, this trend of detachment from the market is difficult to occur in a market with light trading volume, so there is usually main activity involved. Otherwise, it is difficult for the closing stock price to recover. In order to attract more "meat cutting" trades, the main players will definitely need to add some strength, so there will be some large sell orders during the trade, and even some downward reversal trades.
The main force's purpose of attracting "meat cutting" stocks is simple, nothing more than to buy more low-priced chips, which is a way to lure short positions. Usually, the main force will try to pour the chips bought earlier into the market as much as possible during the process of stock price recovery, in order to maintain the stock price and dilute the original holding costs.
