Mid line stock selection refers to the situation where the stock price is in an upward trend, with at least the 10 day and 21 day lines being bullish, preferably above the 55 day moving average, and the volume and performance are well matched. The turnover rate of the rising stock can be maintained at 3% -5%, and it is in the hot spot at that time.

The principle of selecting stocks for the middle line is: the first is fundamental, and the second is technical. Only those with good fundamentals, such as promising development prospects in the industry, stable growth in company performance, and a low P/E ratio, will be eligible to be listed in selected stocks;

On this basis, the technical requirements are: low price, long-term collection by the main force, and proper correction. Those who meet the above two conditions can be selected as mid line stocks. Mid line stock selection techniques

（1） Restructuring stocks

Restructuring stocks have always been a hot topic in the stock market, a "pasture" where dark horses frequently emerge, but also full of traps set by market makers. Therefore, when performing operations, attention should be paid to the following aspects.

(1) Searching for genuine restructured stocks. Real asset restructuring information can be obtained from public channels and media, such as China Shipbuilding (600150), which was once the highest priced stock in the Chinese stock market. After the restructuring, its main business became clear and it became an industry leader with excellent performance, making it a typical example of a restructured stock.

(2) For stocks with extremely low stock prices and small circulation, if there is a restructuring theme, it can be trusted, but not all.

(3) For restructured stocks with already inflated stock prices and those without substantial restructuring, intervention is not allowed. For stocks where the parent company treats its listed subsidiary as an ATM and plans to restructure the subsidiary, such stocks should be avoided.

（2） Potential stocks

Potential stocks are the pursuit of the vast majority of mid-range investors, usually manifested in the following aspects:

(1) Main heavy warehouse. The determination of whether it is a major heavy holding stock is mainly based on the newly added and increased holdings in the fund's heavy holdings, as well as the recent changes in the top ten shareholders of individual stocks.

(2) Hot topics. Major social events, such as the "the Belt and Road" theme, the White Trade Zone theme, the overall listing theme, etc. In terms of the impact of interim and annual reports, such as high undistributed profits, profits generated from share offerings, and industry price increases.

(3) Stocks have good growth potential, such as selecting the top 50 growth potential listed companies and leading companies in the industry.

(4) Strong ability to expand share capital, such as a relatively small total share capital and actual outstanding assets, the company has high undistributed profits, capital reserves, net assets, etc.

（3） Varieties with stable performance growth

Stocks with an average growth rate maintained at a certain level and expected returns that are not overvalued are worth investing in for the medium or even long term.

When choosing stocks to hold in the middle line, the following points should be noted:

(1) Take advantage of the situation. In the face of national policies and a comprehensive decline in the stock market, investors should not have a lucky mentality to seize the rebound or choose to buy. They should take advantage of the situation and clear their positions to observe. If the stock market rises sharply, it is necessary to enter the market and hold stocks in the medium term.

(2) A comprehensive analysis should be conducted. Mid line stock selection should be comprehensively analyzed from six aspects: candlestick pattern, technical indicators, relative price, company fundamentals, overall market trend, and stock theme.

(3) Some high priced stocks should be abandoned. Mid line stock selection should abandon stocks with high P/E ratios and prices far above their intrinsic value. Mid line stock trading should choose large cap stocks and blue chip stocks with lower prices, which are more stable. These stocks have a greater tendency to rise and maintain their upward trend for a longer period of time. Especially for blue chip stocks in the overall market, there will be adjustments after the first wave of significant upward movement, making it easy to grasp when a new round of upward trend occurs. Although the profit margin is relatively small, overall, the risk is relatively low and the profit margin is also large.

The timing to buy mid line stocks

（1） When breaking through the resistance level

If the stock price of a certain stock has been hovering within a fixed range and has repeatedly hit a certain price without breaking through, this price becomes a resistance level for the stock to rise. However, once the stock rises in volume and breaks through this resistance level, there is a possibility of a significant increase in the stock price, usually by more than 30%. This type of stock is often operated by the main force for a long time, and investors can quickly follow up and make short-term investments.

（2） When organizing and washing dishes

The intermediate market trend of each stock must go through 3-5 waves of rise, and there is no stock that rises to its peak in one step. Even for strong cap stocks, there must be a stage of consolidation and consolidation in between. The key is how to accurately identify true and false breakthroughs and corrections, so as to buy in a timely manner during the final stage of consolidation and consolidation. After a period of stock price correction, if the market maker's in and out curve remains bullish, the stock can intervene by pulling out a large bullish line or a medium bullish line with volume at a low level.

（3） Follow the market

The real driving force behind the future changes in the stock market actually comes from the long short state of individual stocks, so the trend of the market first represents the overall development trend of the market. Strong markets have their own operational skills, while weak markets have their own operational rules. Only with a correct understanding and judgment of the overall trend can a suitable stock operation tactic be formulated. When the overall market is in an upward phase and some individual stocks are active, it is advisable to build positions to buy stocks and hold them all the way. When the market is declining, investors should try to observe and wait as much as possible.

Principles for selling mid line stocks

（1） Adhere to the selling rule

(1) When the stock in hand continues to rise, it is necessary to constantly set a profit taking point. If it falls below the profit taking point during a pullback, sell immediately.

(2) The stock has been consolidating for a long time and should be sold and cashed out to seek new opportunities.

(3) A stop loss point must be set, and if it falls below the stop loss level, immediate shipment will be made.