1. MACD dead cross is the top signal
The stock price shows a sideways trend after a significant increase, forming a relatively high point. Investors, especially those with large amounts of funds, must sell or reduce their positions at the first selling point. The technique for determining the validity of the first selling point at this point is "when the stock price is sideways and the MACD is a dead cross", and the day of the dead cross is when the first selling point is formed. After the formation of the first selling point, some stocks did not experience a sharp decline, which may be due to the bullish main force pretending to break through upwards to cover up shipments after the pullback, making the last upward push before selling. The technique for determining the establishment of an absolute top is when the stock price experiences a virtual surge and reaches a new high, but the MACD cannot synchronize. The area of the second red wave is significantly smaller than that of the previous wave, indicating that the volume can continue to decline. This creates a divergence between the two trends, which is a clear signal that the stock price has peaked. The high point formed at this time often becomes the highest point of a bull market. If we cannot escape smoothly at this time, the consequences will be unimaginable. It must be noted that when selling stocks at the absolute top, one must not wait for the MACD dead cross before selling, as the stock price has already fallen significantly by the time of the MACD dead cross. When selling stocks at the top of virtual waves, one must refer to the K-line combination. This is also the flaw of MACD as a medium-term indicator.
2. KDJ exhibits a bipolar morphology, with the top visible
Usually, after a long or rapid unilateral trend, the market shows a large volume or extreme reverse trend, accompanied by classic technical evidence, such as a K-value above 85 on the KDJ line of a jumping star shaped large candlestick week, which is a typical signal of peaking. When the J value of KDJ indicator changes its upward trend and turns downwards, sell 50% first; When the trend of k value increases, you can prepare to sell. When the trend of k value changes, you can turn downwards and clear your position; When the KDJ indicator forms a dead cross, this is the final selling point. However, due to the frequent occurrence of a "bottom in the bottom" situation in technology, this KDJ indicator often fails.
3. Be extra careful with long shadows
A long overhead shadow is a clear signal of a visible peak. In an uptrend, the stock price rises to a certain stage, continuously increasing volume or continuously increasing volume for 3-5 trading days, and the daily turnover rate is above 4%. When the maximum trading volume occurs, the turnover rate often exceeds 10%, which means that the main force is pulling up shipments. If there is a long upper shadow at the close, it indicates a surge and a pullback, indicating heavy selling pressure. If the stock price cannot recover from the upper shadow line of the previous day the next day and trading begins to shrink, it indicates that the market will adjust in the future. In this situation, it is necessary to resolutely reduce or even liquidate positions.
4. A high-level cross star is a sign of risk
After a significant increase, systemic risks in the market may be brewing and erupting, and special attention must be paid to the daily candlestick. The key to selling stocks is when the candlestick shows a cross or a long upper shadow with a hammer shaped bullish or bearish candlestick. The appearance of a high-level cross star on the daily candlestick indicates a strong divergence between long and short positions, and the situation may shift from a buyer's market to a seller's market. The appearance of a cross star at a high level is like a red light at a crossroads, reflecting that the market will undergo a turning point. To avoid risks, shipments can be made. The stock market is complex amidst mistakes, can you navigate smoothly along the way?
5. Double headed and multi headed forms are auspicious to avoid
When the stock price no longer forms a new breakthrough and forms a second head, it should be resolutely sold, because from the first head to the second head, it is the main distribution stage. The M-shaped pattern is a pattern where the right peak is lower than the left peak, which is considered to be a bullish trend. Sometimes, the right peak may also form a bullish trend that is higher than the left peak, and then reverse and fall more terrifyingly. As for other head shapes such as head and shoulder tops, triple tops, and circular tops, they are the same. As long as they fall below the neck line support, they must quickly liquidate their holdings to avoid further losses.
6. Breaking the important moving average and being alert to potential changes
After increasing trading volume, the stock price fell below the 10 day moving average and could not recover. Subsequently, the 5-week moving average was also broken down, and it should be sold resolutely. It is particularly advantageous for those who have just been trapped to quit at this time. How to confirm the support level is particularly crucial here. Generally speaking, if the 10 day moving average breaks on the first day and then rebounds on the second day but cannot reach the support level (such as the 30 day moving average), it is a confirmation of the break, and the rebound is the time to reduce positions. If the stock price continues to break through important moving average indicators such as the 30 day or 60 day moving average, it is necessary to resolutely liquidate the position. In addition, with the downward adjustment of stock prices, a downward channel gradually formed, and the daily and weekly moving averages showed a bearish trend. If there is a rebound afterwards and the stock price rises above the 30 or 60 day moving average without stabilizing, then it should be sold resolutely.
7. Single day "T 0" buying and selling reduces costs
Mainly relying on daily fluctuations in stock prices and using small price differences to unwind. For example, if 100 shares are trapped and the stock opens lower or falls today, and the price stabilizes with a rebound trend, immediately buy 100 shares. Once the stock rises, sell the previous 100 shares to make a profit; There are also confused stock investors. I choose to keep 1, 5, 3, 6, 4, 9, 7, 6, and 4 in my trading. If the stock opens high or reaches its peak, you can sell 100 shares first, and then buy back 100 shares after the stock price drops, which reduces the loss of the falling part. This way, rising can yield double or even multiple times the return, while falling may reduce losses or even gain returns, thus reducing costs until the situation is resolved.
8. Two waves of weak rebound in shipments
When opening low and falling below the previous low, sell (sell out at the limit down price) weak stocks. When there is substantial bearish sentiment, if the opening price is low and the rebound cannot cross the opening price, and then it reverses and falls below the first wave of low points, the technical index weakens, and the market price should be quickly sold out. If it is not possible, it is necessary to make a sell order immediately when the second wave of rebound cannot cross the high point and then turns downwards.
9. Be cautious when restocking and shipping
When the stock market drops to a certain stage bottom, the method of replenishing positions and selling can be used, because at this time, the stock price is far from the investor's buying price, and if forced to sell, the loss is often significant. Investors can reduce costs by appropriately replenishing their positions and wait for the market to rebound before selling at high prices. The best time to replenish positions is when the index is at a relatively low level or has just reversed upwards. At this point, the potential for an increase is enormous, and the possibility of a decrease is minimal, making it safer to replenish positions. In addition, it should be noted that weak stocks will not be replenished, and super dark horses that have surged in the early stage will not be replenished. The stock market is complex amidst mistakes, can you navigate smoothly along the way?
10. The loss of the lower edge of the box shape makes it vulnerable
Regardless of whether it is artificially opened high or flat, opened flat or even opened low, when there is a box shaped fluctuation, sell at the top of the box and buy at the bottom of the box. But once the support price at the lower edge of the box is lost, there should be no hesitation in polishing the holdings. If you cannot sell now, there may be a pullback effect after the box falls below, and the rebound at this moment still cannot pass the original lower edge of the box, indicating weakness.
