Market protection is the protection of the market position, and market protection behavior is generally the main action of the main force. Due to the large number of chips in the main force, there will be significant losses when the stock price falls. In order to reduce the magnitude of the decline and facilitate the rapid rise of the stock price when the market improves, the main force will allocate some funds to maintain the stock price when the stock price falls. The main method is to buy stocks appropriately when the selling volume is strong.
Market protection: As the name suggests, it is the protection of the market position. Market protection behavior is generally carried out by the main force. Due to the large number of chips in the main force, there will be significant losses when the stock price falls. In order to reduce the magnitude of the decline and facilitate the rapid rise of the stock price when the market improves, the main force will allocate some funds to maintain the stock price when the stock price falls. The main method is to buy stocks appropriately when the selling is strong, and control the stock price within a certain range to avoid greater losses caused by excessive price drops.
When the overall market is declining, it can best reflect the strength of individual stocks. Investors can observe whether there are any main players protecting the market from the market, and thus determine whether the main players are attempting to abandon the market. Some stocks, when the market falls, are like abandoned orphans, pouring out for thousands of miles without resistance at important support levels and moving averages, indicating that the main force no longer has the confidence to stay, and the future is naturally difficult to be optimistic. Some stocks have a trend that is clearly different from the market, and the main force has become the "guardian hero". Such stocks are worth paying close attention to.
When the overall market is declining, it can best reflect the strength of individual stocks. By observing whether there are any main force protective actions in the market, it can be determined whether the main force is attempting to abandon the market. Some individual stocks are like abandoned orphans when the market falls, with no resistance at important support and moving averages, indicating that the main force no longer has the confidence to stay, and the future is naturally difficult to be optimistic. Some individual stock trends are clearly different from the market, with the main force becoming the "guardian hero". Such individual stocks are worth paying close attention to. Generally speaking, stocks with main force protective actions have the following characteristics:
Replace the decline with a sideways trend
Stocks that are actively protected by the main force are unwilling to follow the trend and maintain a trend of volume reduction and consolidation, waiting for the best opportunity to pull up when the market is in a downturn and most stocks are in a long-term bearish trend.
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The situation of pulling up the tail market is quite complex and should be analyzed separately. Generally speaking, if the stock price has risen significantly and the stock price is gradually declining on the same day, individual stocks that have been heavily bought up in the tail market should be cautious. This type of individual stock is usually deliberately created by the main force to maintain a good technical form after distribution. Some individual stocks have not seen significant gains, but have experienced significant declines during the trading session. However, they have been bought to recover lost ground in the closing market, which should be a form of main force protection.
Falling back and making a comeback in line with the trend
Some key players mistakenly estimated the overall trend of the market, and during the market correction, they rose against the trend and fell back after being dragged down. If the K-line on the chart closes with a long upward shadow, but the overall upward trend is not destroyed, such "failed to rise" stocks are expected to make a comeback in the short term.