Today, I will share with you a technique for selecting stocks using candlesticks.

There are three effective methods to identify the properties of K-lines:

1. Identify the position of the K-line, which determines its properties.

2. Using the principle of large cycles constraining small cycles, use weekly K-lines to verify and judge the properties of short cycle K-lines.

3. Combine the front and back K-line combinations of the target K-line to assist in judgment.

Principles of Stock Selection

1. Choose stocks against the trend, switch to buying stocks, and select stocks from the daily limit up board during the last two days of the market's decline until reaching the 5-day moving average. At this time, the main force intends to manipulate the daily limit up board. Those who want chips or want to take advantage of the limit up to reduce their positions can choose the stocks they want chips for observation.

2. Choose varieties with concentrated chips and thorough market washing

A stock, whether it is a pullback at the bottom or in an upward trend, can easily rise rapidly if its volume shrinks to the limit, and concentrated chips are conducive to rapid upward movement. If the chips are too dispersed, their price fluctuations will correspondingly decrease.

3. It depends on the bottom measurement

One way is to look at the pile quantity, which means that quantity comes first. We cannot simply look at quantity and energy, but also at the ratio of quantity and the degree of sustainability. If the trading volume continues to rise in a red bar, then the inflow of funds will inevitably drive future market gains.

4. Choose active stocks and avoid stagnant varieties

Generally speaking, in a bull market, the strategy of attacking is aimed at gaining more and faster returns; The adjustment focuses on defensive strategies, with the aim of reducing risks. For example, in recent times, the ChiNext board has been much stronger than the main board, and high-speed rotation of sectors is also a major feature of bull markets. Therefore, it is important to choose stocks that are in line with current hot topics.

5. Pay attention to the timing of intervention

As a strong stock, the speed of its rise varies at different stages. In the stage of market makers attracting funds, intervention requires safety, but the rate of increase is slow and requires more time cost. The most clever technique is to wait until the main force has finished attracting funds and fully washing up the market, and then intervene when the volume starts to rise, which is commonly known as the period of gaining the most fat.

Three elements of weekly K-line stock selection techniques:

1、 Elements of moving average operation. When the 7-week moving average crosses the 14 week moving average, buy firmly; On the contrary, when the 7-week moving average crosses the 14 week moving average, one should sell without hesitation.

2、 Transaction volume factor. When the weekly trading volume exceeds 4-5 times that of the previous week, you can buy with confidence.

3、 Time element. Generally speaking, once you look for an uptrend in the weekly candlestick chart, it usually takes 5 weeks. This refers to the time when each wave of uptrend occurs. During these 5 weeks, regardless of whether the weekly bearish or bullish candlestick line reaches this time limit, it is best to sell and settle regardless of whether you win more or less.