Due to the mutual game of opportunities, the market often experiences rapid and sharp declines to bottom out, providing investors with a good opportunity to buy at the bottom of the market. The oversold nature of the Bollinger Bands can help with bottom fishing, but when stock prices hit the Bollinger Bands from a high, it is often a signal of a peak and a downward shift. Therefore, when investors use the bottom fishing, they must clarify whether the hit is a short-term rebound or a medium-term bottom fishing. It is necessary to treat stock prices at the bottom, middle, and high levels differently, and to calmly buy when the market reaches a freezing point with the help of the fund flow indicator MFI, which can greatly increase the chances of winning.
The market conditions required to capture significant opportunities in the stock market include:
1、 The Bollinger Bands do not break below the lower limit continuously and do not sell. Breaking below the Bollinger Bands and showing signs of bottoming out when the Bollinger Bands limit BB<0 is a good buying opportunity.
2、 Do not act without seeing the freezing point. The cash flow index MFI can be regarded as an RSI index with trading volume:
1. When MFI<20, it indicates that the funds have cooled too quickly in the short term and reached a freezing point, which is a short-term oversold signal.
2. MFI is around 20, and the divergence between the bottom and bottom of the stock price and the bottom of MFI can be seen as a reliable mid-term reversal upward signal.
3. When the MFI<35 indicator crosses its average line twice in a row, it can be considered as a signal for buying in the short to medium term.
3、 William's indicators do not hit the bottom multiple times without taking action. The mid-term decline of the market has been significant, and there is a sign of the William indicator hitting the bottom in the mid-term adjustment, which is a buying opportunity.
4、 In the peak of selling, the stock price suddenly drops sharply on the basis of long-term decline, and small and medium-sized investors panic and cut their positions in large quantities. The sudden expansion of trading volume at the bottom is the biggest feature. At this point, the bears have succeeded, and the heavy hands have significantly broken the Bollinger Bands, which is a good opportunity to lure the enemy deeper into the oversold bottom. Once a stock with a huge bottom volume experiences an increase in attack volume, it can often seize the opportunity of a mid-term reversal and rapid rise.