① If the market opens high, it indicates that there is a strong desire to grab chips due to high popularity, and the market trend is on the positive side. But if the high opening is too high, making the previous day's buyers profit heavily, it is easy to cause excessive profit taking pressure.

② If the opening is low, it indicates that those who are eager to take profits or cut losses cannot wait, so the market trend may turn bad and there is a possibility of market washout. It should be emphasized here to make judgments based on the trend of the moving average system.

If there is a sudden high opening at the bottom, and the magnitude is large, it is often a fundamental reversal of the strength of both long and short sides. Therefore, a retracement is actually a good opportunity to buy and build positions. On the contrary, if there is a significant gap when the overall trend has risen significantly, it is often a sign of the last eruption of multiple forces, indicating that the bull market has come to an end and instead constitutes a selling opportunity. Similarly, a significant low opening at the bottom is often a hysterical blow from the bears, but instead constitutes a bottoming opportunity, while a low opening at the top proves that the sentiment is scattered, and both sides want to escape first, which is also a sign of weak market sentiment. Although there is a rebound afterwards, it basically falls all the way down. However, high or low openings in the middle of the rise or fall of the market indicate that the bull market has reached its end. Open, generally indicating a continuation of the original trend, that is, a bullish opening when rising and a bearish opening when falling.

2. Definition of rise and fall within 30 minutes after opening.

① Long positions often rush to buy in after the market opens in order to smoothly acquire goods, which is common in strong markets. In weak markets, bulls will hit down at the opening in order to get a bargain.

② In order to complete their distribution, bears also intentionally raise prices, resulting in a rapid surge after the opening, which is common in strong markets. In weak markets, bears are fearful and will sell recklessly, causing a rapid decline after the opening.

③ Therefore, the market performance in the first 10 minutes after the opening helps to correctly judge the nature of the market. The reason why both long and short sides attach importance to the first 10 minutes after the opening is because at this time, the number of investors participating in trading is not large, and the buying and selling volume during the trading session is not very large. Therefore, the expected goal can be achieved with a small amount, commonly known as "less money, greater rewards".

④ The second 10 minutes are the time for both long and short sides to enter a period of rest, usually correcting the original trend. If the bears push too hard, the bulls will organize a counterattack, and if they seize the opportunity, they will intervene heavily; If multiple parties attack too fiercely, bears will also counterattack, and profit taking will actively sell. Therefore, this period is a turning point for buying or selling.

⑤ In the third 10 minutes, as more and more people participated in the trading, the buying and selling orders became more realistic with less false elements, so the credibility was higher. The trend during this period basically laid the foundation for the entire day. In order to accurately grasp the characteristics of the trend, the opening can be used as the starting point, and the 10th, 20th, and 30th minute indices can be used as moving points to form three line segments, which contain information about the future trend of the day.

a. If it is first up, then down, and then up again (i.e. first up, then down, and then up again), there is a high possibility that the market will improve on that day, and the daily candlestick may close at a positive line. Because it indicates a strong bullish power. If there is a straight upward trend in the first 30 minutes, it indicates a strong bullish trend and a high possibility of a positive outlook in the future. The probability of closing at a bullish line is greater than 90%, and a retracement is a good opportunity to build a position.

Specifically:

If the second decline is small and not lower than the opening value, the market should be more optimistic. If the third rise reaches a new high, the market will be even more optimistic, and it will generally rise sharply with a small retracement to the bullish candlestick on the day.

If the second decline is below the starting point (opening), it indicates that there is too much bearish pressure, and there is a lot of adjustment pressure on the day. Once the rise is weak, there will be a sharp drop. Only when supported at the bottom can there be a strong rebound, but it is generally unlikely to close at the highest point on the day.

If the second decline is lower than the opening and the third rise is higher than the previous high, it indicates a large divergence between long and short positions, and there will be significant volatility on the day, but it may still close at a bullish line in the end.

If the second decline is not lower than the opening, but the third rise does not reach a new high, especially if there is a more powerful decline afterwards, it indicates that the bulls are relatively weak when the long and short sides face each other head-on. The retracement of the day will last for a long time, and the closing cannot be the highest point. Sometimes it may even evolve into a "first up, then down, and then down" trend, and then go weak and close at a bearish line.

b. If it falls first and then rises and falls again, there is a higher possibility of the market weakening on that day. Especially if it falls first and then falls again, it indicates that the bearish forces are very strong, and the rebound on that day constitutes a selling opportunity, with a higher possibility of a future decline. If the opening is high, the probability of closing with a bearish candlestick exceeds 90%.

Specifically:

If the third decline hits a new low, it is a typical bearish characteristic, and the rebound on that day is generally weak. Similar forms often occur during the formation of the head in the medium to long term.

If the second uptrend reaches a new high and the third downtrend does not hit a new low, it indicates that bullish forces are still strong and there is an opportunity to rise on the same day. The closing may not be at its lowest.

If the second uptrend does not reach a new high, but the third downtrend is unable to reach a new low and subsequently rises, as shown in Figure 5-7, it indicates that although bearish pressure is high, bulls should not be underestimated. They will first rise and then fall on the same day, but will not close at the lowest point.

If the second one rises to a new high and the third one falls to a new low, it indicates that there will be significant volatility on the day, but it may close at a lower level in the end.

c. If it goes up and down first, it indicates that the bullish force is strong, but the bearish pressure is also high. If it is supported at the bottom that day, there is still a high chance of upward momentum.

Specifically:

If the third decline is lower than the opening, it indicates that the bearish forces are too strong, and the dip for the day will be deeper, usually due to profit taking.

If the third decline is weak, even not lower than the first rise, then the bullish force is strong on that day, usually with a large increase and a small recovery from the bullish candlestick.

d. If it goes down first and then up again, it indicates that the bearish forces are strong, but the bulls still have room to counterattack

Specifically:

If the high-level pressure is slightly stronger, there is a greater chance of dilution, especially if the third uptrend is weak and weak, the characteristics will be more obvious.

If the third increase exceeds the opening price, it is generally a market that drives up shipments. After consolidating at a high level on the same day, there may be a sharp decline.

e. If it goes up and down first and then down again, it indicates that the upward trend after the opening is a bearish trap, and there is a high possibility of a bearish trend on the day.

f. If it goes down first and then up again, it indicates that the downward trend after the opening is a sign of bullish profit taking, and the market may still perform well on that day.

3. The trend before the noon closing is also a matter of competition between long and short sides. Due to the midday market closure, investors have ample time to reflect on the previous market trends, assess future developments, and make their investment decisions calmly or impulsively. Therefore, major investors often take advantage of the opportunity before the market closes to make favorable moves, tempting small and medium-sized retail investors to fall for it. Generally speaking, the trends before the market closes and after the market opens should be viewed comprehensively, rather than being treated in isolation. If the market is consolidating at a high level in the morning and reaches its highest point of the day before closing, it indicates that the buying power is strong and the overall trend may continue to improve. On the other hand, it suggests that the main force may want to create a false positive image and take the opportunity to sell.

How to make a judgment?

If it is the former, there should be impulsive buying after the afternoon opening, that is, the overall trend should quickly rise, and there is still a good opportunity to buy after the decline.

If it is the latter, the index may not move at all after the afternoon opening, or even slowly turn back, which is a deliberate attempt by the main force to raise prices to cover the beginning of shipments.

If the general trend continues to decline without rebounding, and a rebound is imminent, the main force often creates the illusion that the general trend of decline is not yet complete, deliberately suppressing it before the morning closing to make it close at the lowest possible level. After the afternoon opening, those who have made up their minds to liquidate their positions at noon may not be able to sell in time, resulting in a sharp decline in the index. This is often the last drop, or because there is relatively less selling pressure at this time, the main force is afraid that they will not be able to eat more chips when the market rises, which may cause a second decline. However, at this time, trading volume often begins to shrink. Therefore, this decline is the best opportunity to build a position.

If the overall trend is flat and on the rise or fall, the trend before the market closes generally has guiding significance. Namely:

① If the market closes at a high point in the afternoon during an uptrend, it indicates strong sentiment and a positive market trend;

② If the market closes at a low point during a downtrend, it indicates low sentiment and a bearish trend;

③ If it closes at a low point during an uptrend or at a high point during a downtrend, it is mostly an illusion and cannot change its original trend.

4. The tail end effect is generally considered to be the last 15 minutes in terms of time, but in fact, the long and short sides have been secretly competing since the last 45 minutes.

a. If there is a rise from the last 45 minutes to 35 minutes, the final trend will generally end with a rise. Because at this time, the number of participants in trading is the highest, and when the upward trend is clear, there will be endless buying orders rushing in to push up the index.

b. On the contrary, if the market falls during the last 45 to 35 minutes, it is generally difficult for the market to perform well.

c. Especially in the last 30 minutes, the direction of the market is of great reference significance. If there is a rebound during the decline and then a downward turn, the market may continue to fall for 30 minutes in the end, which is extremely destructive.

d. This tail end effect can also be used to analyze the trend before noon closing. The trend of 15-20 minutes before noon closing also has a guiding role, which can be analyzed by referring to the tail end effect.

e. In terms of specific operations, when it is found that the market will weaken at the end of the day, active selling should be carried out to avoid opening lower the next day; When a positive trend is observed in the closing session, it is advisable to hold a moderate position to prepare for a higher opening the next day.

5. The duration and strength of a trend also have guiding significance.

The bull market (such as August September 1994) and bear market under T+0 generally show the intensity of the battle between long and short sides in the high speculative market, with the index changing direction every 7 minutes. The longest duration of a certain trend in the Shanghai stock market after T+1 is 50 minutes. The duration mainly reflects the different forces of long and short positions, which is manifested in changes in trading volume. When investors are preparing to enter the market, it is best to choose a trend duration of 10-15 minutes, because an increase in the frequency of trend changes means that trading tends to be active, often indicating the involvement of large funds. Therefore, entering and exiting with ease and greater profit opportunities.

6. In actual trends, future trends can be predicted based on the continuity of the trend, thus maintaining an unbeatable position in operations.

1. Signs of a decline: During the operation of the market, there are often many characteristics indicating that a decline is about to begin. As a short-term operation, one should strive to sell before the start of the decline.

2. In practice, the signs of an uptrend are extremely fast, whether it is an uptrend or a downtrend. Once there are signs of a breakthrough, one should enter (or exit) early, as it is often too late after the breakthrough occurs.

3. Judgment of strength and weakness throughout the day The warning signs of ups and downs can be applied to the judgment of long-term trends, with the only difference being the amplification of the starting and ending points. By mastering this analytical technique, one can even analyze daily and weekly charts.