The principle of band operation is actually to use stock price fluctuations to earn price differences! Therefore, we should buy stocks during low periods and sell them during high periods.
Operation skills:
Mid term band stocks
From the graph, it can be seen that Changyu A has three peaks and valleys in the candlestick band in recent years. This candlestick pattern is more suitable for stock band operations. In the mid-term period, we must pay attention to the fact that the candlestick trend of stocks cannot be broken. Finally, two bands appear before operation, which is relatively reliable. These bands are all in the short to medium term, and the stock price will not rise too much. Pay attention to exiting at fixed positions and enter through stable troughs.
Similar stocks in the index band
Index volatility refers to stocks with similar trends to the Shanghai and Shenzhen stock indices. The index represents the trend of most companies or weights. Refer to the trend of the index band, select a stock, and then operate a stock based on the peak of the index trough, which is a similar stock in the index band. When selecting similar stocks in the index band, it is necessary to choose stocks with similar index trends. Stocks with similar index trends can be classified into heavy stocks and small stocks, and the stock with the highest similarity can be selected for operation. When the valley of the index enters, the peak of the index comes out.
Long term frequency band
In the long term, we should analyze and study the K-line chart of listed companies to identify the characteristics of peaks and valleys. As shown in the figure, Qingdao Haier, from its listing to the current K-line, upon careful observation, will find that every major decline will result in a longer rebound and create new highs. A decline of about 50% is considered a trough, and then the innovation peak will enter the peak period. So in practical operation, when we encounter such stocks, we will choose to intervene at the low point where they have fallen by about 50%. After maintaining a high level of innovation in the long term, we will step out one after another. Such stocks have long-term fluctuations and upward trends.
The stock band is formed by the rise and fall of stock prices on a candlestick chart, and band operations use these rises and falls to earn profits from price differences. The most important theoretical basis for band operations is wave theory.
Operation tips:
As is well known, the stock market is a barometer of stocks. When buying and selling stocks, if it is found that both the main and secondary trends of the market are declining, it is best to stop conducting band operations. If a stock is found to have a medium to long-term upward trend, it can be bought in moderation. If the entire market is experiencing a sharp decline when buying stocks, it is necessary to pause the trading band. Of course, after several consecutive days of market decline, if you can seize the opportunity to quickly engage in a wave of trading, I believe you will definitely reap good profits.
When conducting band operations, do not only focus on the short term, but should also focus on the medium to long term. If there is an adjustment, you can boldly intervene after the technical indicators of the stock are oversold. For details, you can refer to the J value in the KDJ value of the technical indicators. Not frequently changing stocks during band operations. After intervening at a low or lower level in a stage, it is necessary to immediately sell when the market trend clearly ends. Specifically, hot sectors suddenly shrink, Zhuang stocks decrease, stock trading volume decreases, and many technical indicators are severely overbought.
The key to band manipulation is still to focus on the trend of stocks. In different time periods, the direction of the band market will also vary, therefore, different band operation methods need to be adopted. For example, when the market trend is moving upwards, investors can engage in band operations while ensuring that they will not incur losses. If the market trend is downward, then investors need to engage in short selling operations.