The principle of following the market: Due to the large amount of main capital, when they enter a stock, they often leave obvious signs in trading volume, directly manifested as an increase or decrease in trading volume. Due to the fact that market makers can use multiple accounts to create the illusion of increasing trading volume for the chips in their hands, an increase in trading volume may not necessarily be real, but a decrease in trading volume is definitely real. A decrease in trading volume without a drop in price indicates that the market recognizes the current stock price. On the other hand, this phenomenon implies that the main force has a high degree of control over the market. Since market makers come in to make money, if they want to sell, they must have room for profit, and there will inevitably be a process of upward movement in the future.
Key points of stock selection techniques:
1 Short term moving average and long term moving average long position arrangement (with a clear upward trend and using the middle line to protect the short term)
During the adjustment, the decline was not significant, and the trading volume noticeably decreased. (Shrinking indicates that the banker has high control over the market)
During the adjustment process, beautiful platform shapes such as double bottoms and curved bottoms are formed
The stock price has experienced a second surge in volume or the platform has broken through and confirmed a buying point.
Do not use when the trend of the stock market index is downward to avoid systemic risk and pay attention to stop loss.