How to use the daily candlestick to buy bottom and escape top? Stock investors should be resolute and decisive when fleeing to the top. Once a signal is detected, they should sell resolutely and never be soft handed or have illusions. Even if it's sold incorrectly, it doesn't matter. Because there are many opportunities to buy, but often only one opportunity to sell. Because stock prices usually run at the top for a very short period of time, much less than at the bottom, once they are not determined to escape to the top, they are likely to be trapped for a long time. Using technical indicators to determine the bottom is a very effective method.

The commonly used method is:

1. Morphological method. When circular bottom, hidden bottom, W-bottom, and head shoulder bottom appear on the K-line graph, they can all help determine the bottom. Especially the W-bottom shape (also known as secondary bottom probing) is the most common and reliable bottom shape. Once the W-bottom pattern is discovered at a low level, investors can boldly intervene to buy the bottom.

2. When the weekly KDJ index forms a golden cross below 20, it usually shows a bottom pattern;

3. When the RSI index of 5 weeks forms a bottom divergence below 20, it is a bottom pattern;

4. When the weekly MACD indicator forms a W bottom below the 0 axis, it is often in a bottom shape;

5. After several waves of decline, when the trading volume returns to the ground level, it is in a bottom form;

6. After several waves of decline in stock prices, the 5-day moving average crosses the 10 day moving average at a low level to form a golden cross. Investors should be cautious and careful when buying at the bottom, and carefully assess whether the bottom has really formed. When buying, a step-by-step approach can be taken to build a position. Because usually stock prices run much longer at the bottom than at the top. Investors can have more buying opportunities. Therefore, when buying at the bottom, one should not be too hasty, and only buy when one sees it right.

2、 Technical analysis reveals the top:

When a top appears, technical analysis methods can provide clear head signals or selling point signals. If we learn technical analysis well, we will be able to discover the top in advance on the graph.

1. Morphological method: When the K-line chart shows M-head shape, head shoulder top shape, round solitary top shape, and inverted V-shaped shape at high positions, they are all very obvious top shapes;

2. When the stock price has risen after several waves and the increase is significant, such as when the 5-day moving average crosses the 10 day moving average from top to bottom, forming a death cross, it will indicate that the head has been formed;

3. On a candlestick chart, signals such as a breakout, dark clouds covering the top, and a dying cross at a high level are all signs of a stock price peak;

4. The weekly KDJ index is above 80, forming a death crossover. Usually, signals are seen at the mid peak and major peak;

5. If the RSI indicator for 10 weeks runs above 80, it indicates that the stock index and price have entered an extremely overbought state, and the top is about to appear;

6. The Baota Line has risen through several waves, and when it turns green at a high level with two flat heads, three flat heads, or four flat heads, it is a signal of reaching the top.