When trading stocks, we often look at some popular sectors and strong stocks that rank high on the daily increase board, or see where the limit up board is mainly concentrated. This is mainly to understand the hot trends and provide reference for one's own investment. And how to use the limit up board to provide feasible operational opportunities for our actual investment requires a deep understanding of technology and rich experience in market trends. Today, I will introduce three methods to use the low-level limit up to find opportunities for operation.
Three strong behind the boardThere are many buying techniques on the limit up board, but let's first reveal one of the best and relatively easy to master buying techniques on the limit up board. This buying technique can be summarized as "one strong, two strong, three stronger, three strong buying strategy" using a catchphrase. If the following three technical standards are met, then it meets the buying conditions after the first board is formed and can be boldly bought:
A. The first wave of stock market trend is strong, and it is mostly a continuous upward trend (preferably a continuous limit up trend) to launch the first wave of rise, which is called "one strong";
B. After the first strong rally, the stock price shows a strong adjustment, usually lasting for 3-8 trading days, during which the stock price does not fall much, which is called the "second strong";
C. After a short-term adjustment (some stocks have a longer adjustment time, the shorter the adjustment time, the better), the stock price will restart and break through the high point of the "one strong" through the limit up board, which is called the "three strong". At this time, you can boldly buy when the limit up is about to occur.
Rising to the limit and hitting the top
The so-called limit up peak refers to the stock price hitting an important top in the form of a limit up board (or close to the limit up board), which is mostly manifested as a double or triple top. This is also an essential quality and belongs to the strong and excellent products that can be boldly bought. If the following three conditions are met, it is possible to be a dark horse and intervene at a low price:
A. The stock price has experienced a wave of initial increase and is relatively strong;
B. After the rise, there is a sideways oscillation adjustment, with a "W" bottom or box at the intermediate position of the rise;
C. Subsequently, it will restart and break through the limit up board. At this time, you can buy on the day of the limit up board, or buy when 2 or 3 small stars close continuously the next day, or buy near the 5-day and 10 day moving averages.
Weekly Long Bull
The so-called weekly bullish trend refers to buying when the weekly candlestick meets the conditions we set. This is a simple and very effective technique for mining mid to long term doubling bull stocks. By mastering this method, we have the opportunity to intervene decisively when a large bull stock has just bottomed out and is about to launch a repeated upward trend, ultimately achieving beautiful investment returns. The weekly candlestick meets the following three conditions, which is what we call a bullish candlestick:
A. The stock price first saw a wave of rise and a large number of L1, followed by a correction;
B. After adjustment, the stock price has restarted with clear signs of breakthrough;
C. When the stock price breaks through the highest price of the first wave, the trading volume L2 and L1 are basically equal, and the turnover rate is also roughly the same. At this time, it is the buying opportunity.