To understand stock charts, some basic knowledge must be learned well. For example: K-line chart, moving average, trading volume, time-based chart, some stock terms, etc. If all of these are learned well, there will be no problem.
Beginners should be more cautious when trading stocks. The stock market is tempting, but risks coexist. Buy less in the early stages and learn to observe and analyze trends. At the opening, the first thing to consider is the stock price and transaction volume of the call auction, whether it is a high opening or a low opening. That is to say, is the price higher or lower compared to yesterday's closing price. It expresses the market's willingness to anticipate whether today's stock price will rise or fall. The size of trading volume indicates the number of people involved in buying and selling, which often has a significant impact on the activity level of transactions within a day. Then observe the direction of stock price changes within half an hour.
Generally speaking, if the stock price opens too high, it may fall back within half an hour, and if the stock price opens too low, it may rebound within half an hour. At this point, it depends on the size of the trading volume. If the opening is high but does not fall back, and the trading volume is increased, then the stock is likely to rise.
When looking at stock prices, not only should we look at the current price, but also at yesterday's closing price, the opening price of the day, the current high and low prices, the magnitude of the rise and fall, etc. Only in this way can we see where the current stock price is and whether there is buying value. See if it is rising or falling. Don't rush to buy stocks that are generally in decline, wait until they stop falling before buying again. Stocks that are on the rise can be bought, but be careful not to be trapped by them.
Stocks often experience several ups and downs within a day. You can check whether the stock you want to buy is in line with the trend of the market. If so, the best way is to keep an eye on the market, sell when the stock price reaches its peak, and buy when the stock price drops to its bottom.
Although this approach cannot guarantee that your buying and selling will be completely correct, it can at least sell at a relatively high price and buy at a relatively low price. And they won't buy at the highest price and sell at the lowest price. By comparing the number of buying and selling lots, it can be seen whether the buyer has more power or the seller has more power.
If the seller's power far exceeds that of the buyer, it is best not to buy. The current hand indicates the size of the transaction volume that was just completed in the computer. If a large number of transactions occur continuously, it indicates that there are multiple people buying and selling the stock, with active trading, which is worth noting. If no one buys for half a day, it is unlikely to become a good stock. The cumulative number of current hands is the total number of hands.
The total number of lots is also known as trading volume. Sometimes it is a more important indicator than the stock price. The ratio of total lots to circulating shares is called turnover rate, which indicates how many shareholders bought on the same day. A high turnover rate indicates that there are many people buying and selling the stock, making it easy to rise.
But if it is not a newly listed stock but experiences a huge turnover rate (over 50%), it often falls the next day, so it is best not to buy. After a day of trading, if the actual closing price is higher than the calculated price, it is called a stock option. Conversely, if the actual closing price is lower than the calculated price, it is called a stock option. This is often closely related to the market situation at that time, as it is easy to fill in the stock price when it rises, and easy to stick to the stock price when it falls.
When the market situation is good, people are often willing to buy stocks that are about to receive dividends or have just been ex rights, because it is easy to fill in the rights. That is to say, the stock price is likely to continue to rise on the same day, even though the closing price may seem lower than the previous day, in fact, the stock price has risen.
