Bottom fishing refers to the operational strategy of using a certain valuation indicator to measure the stock price falling to its lowest point, especially buying when it falls sharply in a short period of time, with the expectation that the stock price will rebound quickly. But there is no clear standard for what kind of price is the "cheapest" or "bottom".

How to Accurately Copy the Bottom of Stock Technical Analysis

1、 Accurate bottom fishing includes three key points:

1. Is the moving average system adjusted properly? (When rebounding and buying at the bottom, it is whether the decline is in place.)

2. Daily K-line trend

3. Transaction volume situation

2、 Is the moving average adjustment in place

The moving average, ultimately, is the cost line for investors to hold their shares. Different moving averages represent the average cost of ownership for investors over different time periods. The half year line represents the average holding cost of investors within six months, the 30 day line represents the average holding cost of investors over the past 30 days, the 10 day line represents the average holding cost of investors over ten trading days, and the 5-day line represents the average holding cost of investors who have participated in trading over the past five trading days. Therefore, the essence of whether the moving average adjustment is in place is to see if everyone's holding cost tends towards a phased balance. If the phased holding costs of investors are basically the same, then the downward momentum will be greatly weakened. And phased adjustments may be in place.

The sign of a short-term upward phase balance is:

Key point for accurate bottom fishing: Start gradually leveling off when the 5-day line approaches the 30 day line

Key point 2 for accurate bottom reading: The candlestick gradually shortens during the adjustment process, becoming a small yin, small yang or cross star candlestick shape

Key point three for precise bottom fishing: As the candlestick gradually shortens, the trading volume significantly shrinks

Conclusion: Once the 5-day candlestick is basically flat near the 30 day candlestick, the daily K-line of the stock price converges to a small bearish and bullish candlestick, and the trading volume synchronously shrinks significantly, the stock price is likely to have reached a temporary bottom, at which point it can be accurately copied. If the stock price increases in volume, the bottom will be more confirmed.

3、 How to accurately copy the bottom:

1. When accurately hitting the bottom of the band, the 30 day line must be in an upward state;

2. The precise bottom fishing method has very high reliability in the middle and middle stages of stock price operation, but its reliability decreases in the middle and later stages of stock price;

3. If the 5-day moving average deviates from the 30 day moving average and approaches the 10 or 20 day moving average with precise bottoming conditions, the potential for future upward movement will be relatively reduced;

4. When applying this method to rebound and bottom fishing, it is necessary to make corresponding changes to point one (please refer to the rebound chapter for details);

5. This method may exhibit non-standard trends when applied, but as long as the above three points are met, the principle of bottom fishing remains the same;

The biggest constant in the stock market is change, therefore, when learning methods, everyone must understand the principles on the basis of memorizing the methods. Only by thoroughly understanding the principles and methods can we achieve flexible application.