Stock selection is the first step in buying and selling stocks, especially in selecting suitable stocks that can greatly help with profitability. Of course, investors have their own stock selection methods in the market, as well as their own reference indicators and factors.

A golden cross stock selection

1. [Principles of Stock Selection]

The upward trend of the market represents a good market environment, and the ability of the main force to control the market is very strong. The MACD has shown a bottom decrease, indicating that the market is in a state of no way to fall. The MACD golden cross represents that the market is about to start, and the high trading volume indicates that the main funds are entering the market.

2. [Stock selection criteria]

(1) The market is in an upward trend, with stock prices rising at the bottom and MACD slowly decreasing at the bottom.

(2) The first golden cross is located at a lower position than the first bottom, and the buying point is at the MACD golden cross position of the second bottom.

(3) When MACD crosses, there should be a moderate increase in trading volume.

(4) The purchased space should be at least 20% away from the initial pressure level.

Red column launches stock selection for the second time

Principles of Stock Selection

The upward trend of stock price represents the healthy development of the market. DIF can have a second red bar amplification, and the stock price adjustment time is not long. The MACD golden cross is upward, indicating that the upward momentum is still continuing, coupled with the amplification of trading volume.

2. [Stock selection criteria]

(1) The stock price is on an upward trend, with the bottom being higher than the bottom.

(2) When the stock price rises, the red bar of DIF appears to enlarge, and when the stock price rebounds, the red bar of DIF gradually shortens. When the stock price rises, the red bar of DIF enlarges again, and no green bar of DIF appears during this process.

(3) When a red bar appears in DIF, the fast line and slow line must form a golden cross.

(4) It is best to increase trading volume with the emergence of buying points.

The stocks selected using this stock selection method showed a significant increase in the later period.

MACD stock selection precautions

1. Attention should be paid to trading volume. An increase in trading volume means an increase in turnover rate, which reduces the upward selling pressure and leads to a sustained rise in stock prices.

2. Long term stocks require special attention when there are main players involved, as their stock characteristics may change due to their involvement;

3. Try not to touch weak stocks that are lagging behind the trend and switch to strong stocks;

4. Do not buy stocks that you are not familiar with.