1. Stocks are beginning to experience severe undervaluation. Especially when the listed company itself has not had any bad news and has been operating normally, this is a manifestation of excessive decline.
2. The stock price should maintain a distance of at least 50% from the historical high and the previous capital intensive escape position. The reason is simple: if the banker does not have 50% of the space, the early main force cannot produce goods. Secondly, if the new main force does not have a price distance of more than 50% from the early banker, it is easy to encounter collision phenomena; Thirdly, there is not enough room for upward movement.
3. At a certain point, the stock price stopped falling and gradually exited the original downward trend in technical form. The stock price usually fluctuates around 3%, and short-term investors have almost no opportunity to sell high or buy low, starting a wave of volatile buying market.
4. Market makers often build positions when the market is very pessimistic, and there is a large-scale irrational sell-off in stock prices, accompanied by continuous negative news. This wave is not yet flat, and waves are rising again.
5. Cows are long and bears are short. The main force entering the market to attract funds changes the long and short positions of a stock, and the stock price will unconsciously rise under the driving force of the main force's active buying. After a period of slow bull run, the main force usually uses a small amount of chips to quickly suppress the stock price in order to continue building positions at low prices. This repetition forms an N-shaped candlestick pattern with one or several waves of bull long and bear short on the candlestick chart.
Signs of main force building warehouses
Firstly, a small amount can pull out the long yang or seal off the limit up. Secondly, the K-line trend goes its own way, ignoring the overall market and emerging from an independent trend. Thirdly, the K-line trend is fluctuating, while the intraday chart oscillates violently, resulting in a significant decrease in trading volume. Fourthly, in the event of a negative impact, the stock price may rise instead of falling, or even if there is a slight correction on the same day, it may close with a strong bullish trend the next day and quickly recover to its original price.
There are two stages for the main force to build warehouses
1. Preparation before building a warehouse. We cannot see the preparation before building a warehouse in the candlestick chart. Let's skip it here. Simply put, it means conducting market research, paying attention to policies, preparing funds, and preparing manpower.
2. The main force of building a warehouse must have done so when the stock price drops significantly and reaches a very low level. If the stock price runs from low to high and remains at a high level, it is definitely not building a warehouse.
Judgment skills for entering the end of warehouse building:
1. The stock price first builds a platform at a low level, and then slowly moves out of the bottom. The moving averages gradually shift from intertwining to bullish alignment, especially if there is a high-volume long yang breaking through the consolidation zone, it can further confirm the completion of the position building period;
2. A small amount can pull out the long yang or seal off the limit up. After the new stock is listed, the banker who is interested in the new stock enters the market to buy. After a period of collection, if the banker can easily pull out the limit up with very little capital, it means that the banker's chip collection work is coming to an end and has the ability to control the market at will.
3. When encountering negative news, the stock price did not fall but instead rose, or although there was a slight and unlimited correction on the same day, it closed with a strong bullish trend the next day, and the stock price quickly recovered to its original level. On the market, it can be seen that bearish sentiment hit the day. After the opening, there were many sell offs and more buy offs, but soon sell offs decreased and the stock price stabilized. Due to the fear of retail investors finding cheap chips, the stock price was quickly raised to its original level by the market makers the next day.
4. After setting a new high in volume, the volume then shrinks and falls below the previous low point, creating a false impression of a downward breakthrough. This is a very aggressive wash off technique after the main chips are concentrated, aiming to wash away the last remaining floating chips and enter the upward phase of the main uptrend. This type of stock may cause significant book losses in the short term, but as long as it persists, the future rewards will be very high returns. The saying goes that those who achieve great things must go through great hardships. For such situations, firmness and patience are the best protective weapons.
