One Techniques for Observing the Plate

The trading hours for Shanghai and Shenzhen are 4 hours per trading day, with the first and last half hours being the opening and closing hours, and the remaining 3 hours being the intraday time. During these 3 hours, it can be divided into three stages: long short battle, long short decisive, and long short strengthening.

1. Battle between long and short positions. If the opening only marks the beginning of a day in the stock market, then the intraday trading session is the beginning of a formal confrontation between long and short positions. If the frequency of index and stock price fluctuations is too high, it indicates that the struggle between long and short sides is more intense. If the index and stock price remain parallel for a long time, it indicates that both long and short sides have withdrawn from the wait-and-see approach and have no intention of engaging in a battle. The victory or defeat of both long and short sides depends not only on their own strength (funds, confidence, skills), but also on two factors: news and popularity.

2. Winning between long and short positions. After intense fighting between long and short sides, the stalemate has been broken, and the overall market trend has shown a clear tilt. If multiple parties have an advantage, then gradually push up; If the air side has an advantage, it will continue to deteriorate. The dominant side will pursue the victory and expand their gains, while the other side's resistance will significantly weaken when they see the situation has receded. At this moment, it is often the best time to enter and exit. Early, unpredictable fluctuations, full of risks; Late, missed the opportunity, deeply regretful. The long short battle is composed of the following factors.

(1) Performance of indicator stocks. The index stocks have strong upward momentum, and there is no reason for the overall market to decline; Indicator stocks are sluggish, and the overall market is bound to sink. If a long index stock becomes a short index stock, the overall decline speed of the market will accelerate. Therefore, the history of indicator stocks has been a key focus of competition between long and short parties.

(2) The number of rising and falling households. The general decline of the market and the surge of individual stocks are ominous signs, which are harmful to the overall trend of the market rather than beneficial. There is a great contrast between the performance of individual stocks and the overall market, and excessive concentration of funds in individual stocks causes the market to bleed, leading to a vicious cycle. There are more rising companies than falling companies, and the distribution is even. There are many rising companies, and there is no gap for the bears to take advantage of. The closing index rises, while the bears have the upper hand, resulting in a falling trend. The best time to observe the number of rising and falling companies and identify the strength of long and short positions is one hour before the closing, that is, in the later stage of the long short battle. In the early stage, the long short battle was intense, with frequent ups and downs, and little reference value.

(3) Number of fluctuations. The fluctuation amplitude of the stock index is large and frequent. In a downtrend, it indicates a tendency to rise, while in a uptrend, it indicates a tendency to fall. In general, if there are more than 7 significant fluctuations in a trading day, there is an opportunity for reversal.

3. Long short reinforcement. Draw the highest and lowest points that appeared before 2:30 pm and take their midpoint as the standard. If the index is between the midpoint and the highest point at this time, the upward trend will further strengthen and the market is expected to close higher in the end. If the index is between the midpoint and the lowest at this time, it often leads to a closing session.

Long short strengthening is the final stage of the trading session. After intense battles between long and short sides, the situation has become clear, and there will not be a situation where the strong are stronger and the weak are weaker in the market.

II Tips for Observing the End of the Day

The end of the day is a summary of the long short battle, so the closing index and closing price have always been valued by market participants. The opening is the prelude, the intraday is the process, and the closing is the conclusion. The importance of the closing session lies in its special position as a bridge between the past and the future, allowing for a review of the previous market and prediction of the future.

At the end of the day, the market closed red with a long bearish candlestick, indicating a rebound after bottoming out and gaining support. It may be considered to follow suit, with the majority of the market opening high the next day. Buying at the last minute can avoid the risks of the day.

The market closed black at the end of the day, with a long upper shadow line and heavy upward pressure. It is advisable to reduce weight appropriately, and there is a higher probability of opening low and moving low the next day.

At the end of the uptrend, there is a huge amount of trading volume released, and it is not advisable to intervene at this time. The next day's opening may encounter selling pressure, so it is not easy to rise. The large volume released at the end of the downward trend is due to panic selling, which is a signal that the market will jump short.

There was a slight elongation at the end of the downtrend, and a slight decline during the end of the uptrend. This is a correction for the end of the session and has no practical significance.

Both long and short sides will fiercely compete for the closing stock index and price, but two points need to be emphasized:

Firstly, beware of large institutional investors using technical indicators to deceive the market, intentionally raising (suppressing) the closing stock index and price before the close, and then jumping short and opening high (opening low) the next day, in order to achieve the goal of raising prices and selling goods (buying at a lower price) the next day. The identification method is to check whether there is a large trading volume cooperating with a high closing (low closing). If the trading volume is too small, the long (short) side will have no power, and if the trading volume is too large, the long (short) side will sell (buy), both of which are traps. Secondly, check for any positive (negative) news or rumors to match, and analyze the authenticity of the rumors. Based on high trading volume and bullish (bearish) news, it can be preliminarily confirmed as a long (bearish) position, and buying (selling) stocks may be considered. But to prevent being deceived, do not fill the warehouse or leave it empty.

Secondly, the Monday effect and the Friday effect. Whether the stock index and price close with a bullish or bearish candlestick on Monday has a significant impact on trading throughout the week, as the long (short) side often follows suit and connects several bullish (bearish) candlesticks. Therefore, caution should be exercised. Friday's closing stock index and price are also important, as they not only reflect the day's long and short wins, but also reflect the week's long and short wins and losses.

III Observing the movements of market makers in both external and internal markets

The third level call for buying and selling is an indicator that displays buying and selling orders in the upper right corner of a dynamic time-based chart, showing the number of buying orders at three price points and the number of selling orders at three price points.

The larger the accumulation of internal trading (compared to external trading), the more proactive investors are in selling, indicating that they are not optimistic about the future market, so the likelihood of the stock continuing to decline is higher.

Usually, the larger the accumulation of external stocks (compared to internal stocks), the more proactive buying behavior there is, and investors are optimistic about the future market, so the possibility of stocks continuing to rise is greater.

By analyzing the size and proportion of external and internal trading volumes, investors may often discover whether there is more active buying or selling, and often discover the movements of market makers, making it an effective short-term indicator.

But investors should pay attention to the trading volume of the stock at low, medium, and high levels, as well as the total trading volume of the stock, when using external and internal trading. Because the quantity of external and internal markets is not always effective, and in many cases, when the external market is large, the stock price may not necessarily rise; The internal market is large, and the stock price may not necessarily decline.

4 Tips for Observing Opening Markets

Opening is the beginning of a trading day and also the tone of the overall trend of the market. Unless stimulated by strong bullish or bearish news, high-intensity fluctuations and a large proportion of reversals generally do not occur during the day.

1. Collective bidding. The period from 9:15 to 9:30 in the Shanghai Stock Exchange is designated as the call auction time. The significance of call auction is to adjust the stock price according to the supply and demand relationship, which can preliminarily reflect the bidding, volume situation, and the dynamics of large investors' entry and exit.

(1) After the opening, it is necessary to immediately check the number of buy orders and sell orders, and predict whether the market will go long or short. Generally speaking, if the buy order is more than twice the sell order at the opening (such as buying 100000 orders and selling 50000 orders), it indicates strong buying potential; On the contrary, if the sell order is more than twice the buy order, it means that the short side has a very strong sell order.

(2) If the ratio of the number of buy orders to the number of transactions is 8.0 or above, it indicates that a large investor has made a purchase. If there are more than 8 consecutive occurrences of a large ratio, it indicates that the investor has a strong desire to enter the market; On the contrary, if the sell order is above 8.0, it can be quickly sold as a medium stake.

The call auction is a rehearsal for the daily movement of the market, which reflects the changes in the price volume relationship and the entry and exit trends of large investors, and therefore has important reference value.

2. Revise the opening. 9:30-10:00 is the corrected opening time. If the opening is significantly high, there will be a certain degree of pullback, and if the opening is significantly low, it will be appropriately raised. Afterwards, the market will be adjusted and operate according to their respective trends. Due to the artificial factors of uplift and suppression, both the opening index and the stock price have a certain foam nature. At this time, the entry risk is very high. We must wait until the opening is corrected and the blind spot on the market is eliminated before we can see the real situation of the market. If the opening is polarized and there is no sign of correction, the strength and closing trend of the market can be immediately confirmed.

3. Open the third line. The opening three line refers to the position of the index line in the upper three stages after the opening. If 10 minutes are used as a unit of calculation, the rise and fall of the market are as follows:

At 9:40, 9:50, and 10:00, the opening third line consistently moves above the opening parallel line, with one wave higher than the other, indicating a bullish trend. The opening three lines have been falling all the way, always below the parallel line and getting farther away from it, which is undoubtedly a downward trend.

We should also pay attention to some less obvious trends in the opening of the third line. If the opening of the third line continues to rise with two ups and two downs, while the opening of the third line with one up and two downs or two down and one up tends to decline, operators should closely monitor the changes in the opening of the third line, flexibly grasp them, and make accurate judgments in a timely manner.