Professional players always use the fastest methods to grasp the key issues and carry out their high-level practical operations. This column focuses on five tips for quick market reading for investors' reference. I hope to get some help from it.
1. The first quick viewing technique is to rank the bullish and bearish trends.
There are four major factors in the market: price, trading volume, time, and people. The ranking of price factors is 61 in Shanghai and 63 in Shenzhen. Looking at the first board increase, the first board directly tells us the activity of the strongest market makers on the day. The strongest market makers are those who rise first. If even the strongest market makers dare not perform at the front, it indicates that the market is weak on the day and does not provide opportunities for profit. So, how can we judge the strength of this market? We provide the following empirical method for judgment.
(1) If there are more than 5 stocks that hit the daily limit up on the first board, it indicates that the market is in a super strong state. Those market makers are trying their best to use the market to boost their own stocks, and the market provides an excellent operating background. Therefore, short-term operations can be resolutely carried out.
(2) In the second scenario, if the stocks on the first board continue to rise by more than 4% even in the last place, the market is in a very strong market, and short-term operations can be decisively carried out. This overall market background provides a good opportunity for individual stocks to perform. On the contrary, if the stocks with the highest price increase do not exceed 3%, which means they do not provide us with short-term profit opportunities, the cost of buying and selling once is 1.5%. We cannot buy the lowest price or the highest price, so only stocks that have increased by 3% have short-term price differences and opportunities. If there are no stocks with a price increase of more than 3%, we will have to pay commission if we buy them, indicating that the market is very weak. At this time, we should learn to be absolutely short, and all operational behaviors should be stopped. On the other hand, we can also look at the decline chart to see which market makers are fleeing and reducing their positions, and which stocks are plummeting. This can also serve as a warning to us.
2. The second quick viewing technique is to observe the real-time fluctuations in the market.
For example, in the first half of an hour, a certain stock has a relatively strong collection force because the concentrated selling pressure of new stocks is more advantageous. Most of the chips will flood out in the first half of the hour, making it easier to collect. The market maker is determined to raise the collection without considering the cost, and after collecting to a certain extent, let it fall slightly and take over on dips. The first half of an hour belongs to the collection of gains, and the immediate trend afterwards belongs to the wave by wave decline, indicating that its collection is basically completed or mostly completed. Therefore, it gradually falls and takes over on dips. This is a typical wave by wave attack trend, wave by wave decline and take over decline trend, which is judged from the perspective of immediate fluctuations. If its real-time fluctuation trend continues to rise wave by wave until the end of the trading session, and the stock's final increase is greater than 3%, this trend belongs to a unilateral upward trend. For example, if the stock is suspended in one wave, it belongs to the classic unilateral trend. If the stock is suspended in one wave, it belongs to an extremely strong trend. This stock will have at least one subsequent upward trend tomorrow, and short-term fees will be given at least. If the stock's operating position is relatively low and the indicator position is relatively low, this stock is a good short-term variety. If its position is relatively high, it belongs to a super short-term variety. It will be released tomorrow, and we will grab its hat. Now let's take a look at the technical position of this stock. This stock is called the Commodity Trade Center, and it is now a platform breakthrough. From its overall trend, it runs relatively high, so in terms of operation, We can establish a maximum of 30% experimental position in this stock, which presents a short-term opportunity. There is also a type of stock where the immediate volatility ultimately leads to an increase, but it is not one wave after another. It is a high point that is higher than the previous high point, and each low point is higher than the previous high point. This is considered extremely strong. There is also a type of high and low point that constantly overlaps, ultimately leading to a bullish candlestick. This is a legitimate uptrend, and these are all different. If it is a legitimate uptrend at this time, short-term operations should be carried out carefully. Firstly, the safety level of this operation should be judged, and secondly, strict management of positions must be carried out.
The third situation is that the overall trend of the market is gradually shifting downwards, and professional players should give up absolute short positions and wait, which is the second method of quick market observation.
3. The third quick viewing technique is to compare the acceleration of its rise and fall, for example, the daily rise accelerates by 1333 units, the flat rise accelerates by 130 units, and the fall accelerates by 1316 units. The acceleration of the rise and fall is basically similar, and the overall market is only slightly stronger but not particularly strong. We can then look at its real-time trend and see that it gradually declines, with high and low points repeatedly ending in consolidation, ultimately closing with a small negative line. The high position of the small negative line, due to its low technical indicator position, poses no threat to the overall trend of the market and belongs to a strong adjustment state. Short term operations can still be actively carried out.
4. The fourth quick viewing technique is the relationship between volume and price during ups and downs, whether there is trading volume and funds to support the rise, and whether there is trading volume to support the fall. If there is volume during an uptrend and no volume during a downtrend, it indicates that its overall state is relatively good. For example, when the trading volume is moderately increased during an uptrend, it shrinks during a downtrend. This is a relatively healthy relationship between volume and price, and it is possible to actively engage in operations. If it increases in volume when it falls and decreases in volume when it rises, this is an unhealthy price volume relationship, and operations should be stopped in this situation.
5. The fifth quick viewing technique is to look at the linkage of related markets, such as the linkage between Shanghai and Shenzhen, and the linkage between A-shares and B-shares. If all markets are consistently positive, then this is the best opportunity for operation. If Shanghai rises while Shenzhen falls, or A-shares rise while B-shares fall, they are mutually contradictory and contradictory. Therefore, when operating, caution should be exercised. The first is to have stricter requirements for operating conditions, and the second is to strictly control the entry and exit of positions. The establishment of experimental positions should be relatively small and conservative.