1、 From the K-line chart, it can be seen that
From the K-line chart, the incubation period of dark horse stocks generally occurs when the stock price is fluctuating at a low level. At this time, there are often some special K-line shapes appearing on the K-line chart, with a frequency exceeding the random probability. Typical examples include small bullish and bearish lines with longer upper and lower shadows. Moreover, when the trading volume of a trading day is mainly concentrated in the upper shadow area, there is a large empty volume in the lower shadow area.
When the stock price jumps short and opens high, it naturally falls and closes with a longer bearish candlestick, accompanied by a significant increase in trading volume. But afterwards, the trading volume did not continue to increase, but rapidly declined. The stock price has once again fallen into a seemingly disordered state of operation.
The stock price jumped short, opened low, and then rose upwards, closing with a bearish candlestick in the late trading session, and may even experience a significant increase. On the next trading day, the stock price was suppressed by a small trading volume.
If such a candlestick pattern appears frequently, it is likely to be a trace left by the main force's downward pressure to attract chips.
2、 From the perspective of K-line combination
If there is a stock price surge on the K-line combination, the trading volume is significantly increased and the increase is relatively small, resulting in a stagflation phenomenon. However, during the subsequent decline, trading volume shrank at an extremely fast pace. Sometimes, after a short period of price increase, the stock price enters a sideways consolidation state where it does not rise or fall. Although the trading volume is not as large as when it rose, it remains at a relatively active level and begins to shrink after two months of consistency.
In this process, the main force buys more than sells, and after a long period of accumulation, the chips in the main force's hands continue to increase. At this time, the main force often uses this method to change the direction of the stock price at the close of the individual stock, thereby causing some technical indicators to reverse and confuse investors.
3、 Moving average system
Technically speaking, the biggest difference between a dark horse and a failed case lies in the gradual shift of the moving average from being chaotic and tangled to having clear and orderly patterns.
In the stage of main force warehouse building, the early chips of main force warehouse building are relatively scattered, and the regularity of stock price fluctuations is poor. On the moving average, it is manifested as the continuous fluctuation of short-term moving averages, medium-term moving averages, and long-term moving averages. As the number of chips in the hands of the main players increases, the floating chips in the market continue to decrease. When the main force's chips reach a certain level, they often use various means to reduce the volatility of stock prices and level the average holding cost in the market.
4、 During the warehouse construction phase
In the actual operation process, the main force always uses various operational methods to create illusions and confuse ordinary investors. Especially during the main force's position building stage, the main force always creates various illusions for ordinary investors, forcing them to sell their chips at a low price. At the top of the bottom region, the main force often releases various bearish signals or creates bearish structures on the candlestick chart, triggering market panic and causing stock prices to fall.
On the surface, this decline is difficult to distinguish from the top formed by the failure of the dark horse form. But generally speaking, the decline in stock prices often reveals the true intentions of the main players. Generally speaking, if the main force holds a firm position during the process of stock price decline and seeks to raise funds at low prices, it is difficult for the stock price to fall back below the previous trading intensive zone and maintain it for a long time unless there are some special circumstances.
