The so-called 'dragon turning back' refers to the situation where the main capital, after a significant increase, gains substantial profits in the short term and increases stock selling, and needs to suppress the stock price to achieve the purpose of clearing the market, in order to prepare for further price increases or sales. Thus providing a buying point for bargain hunting funds. Below, the editor will take you to learn about the "Dragon Turnback" strategy.

”Key points of the "Dragon Turning Back" strategy

In the early stage, strong stocks (must have a limit up, preferably two to three limit up, and no limit board is best) have their stock prices retraced to near support, and when they increase again near support, it is the main uptrend. Its principle is the form formed by the completion of the first wave of fund building and the second wave of market washing. Support is the lifeline of the main force, and another increase in volume or limit up is the main signal for the main force to enter the main uptrend. The high reliability of this form lies in the main intention behind it. No matter what theme the main force uses, as long as the K-line form emerges from the "dolphin mouth" form, the probability of skyrocketing is quite high.

Regardless of whether it is a bull or bear market, the best operation in any environment is undoubtedly to operate leading stocks. This is the fastest profit model and the most risk averse profit model; However, the operation of leading stocks is not to encourage everyone to catch up, but to wait for the fleeting buying opportunity of leading stocks' pullback. This is the essence of the Longhuitou strategy. Of course, the Longhuitou strategy is just an operation method, and the related operation philosophy, operation principles, operation discipline, buying points, selling points, mentality and other factors should also be taken into account.

Technical points

1. After the first wave of significant upward movement, a stock's correction, stabilization, and subsequent rebound are often excellent opportunities.

2. During the lifting process, the volume can continue to effectively increase.

3. The shorter the callback time, the better, and the smaller the callback amplitude, the better.

4. If the stock of "Dragon Return" stops falling near key support levels or important moving averages during the correction process, its reliability will increase.

5. If the reason for a strong stock experiencing a "dragon turn" is due to a significant decline in the overall market, the operability of such strong stocks will be very good.

6. It is particularly good to have a theme that supports the continuous rise of stock prices, which is in line with the current market hot topics.

”Characteristics of the "Dragon Headed" Shape

One is the strong start in the early stage, with no quantitative limit;

Secondly, the key support level cannot be broken by reducing the volume and stepping back;

Thirdly, the target variety has certain thematic support. Fourthly, these stock plates are moderate, not large, but also not small.

Therefore, we must attach great importance to the form of bull stocks that meet the standards, but there may not necessarily be a profitable market. Whether to intervene immediately requires a comprehensive analysis based on the intraday trading pattern, volume price relationship, sector theme, and overall market situation.

In short, the high reliability of the Dragon Head pattern lies in the degree of control of the main force behind it. Regardless of the subject matter of the target stock, as long as the K-line pattern has a bullish trend, it is inevitable for it to rise. The only difference is the intensity and degree of the increase. Having truly mastered the Dragon Turnaround strategy, coupled with strict rules for stop loss and take profit operations, can be advantageous for achieving an unbeatable position in actual combat.