What principles should be followed for bottom fishing? Practical Skills

There is a famous saying in the stock market that beginners die from chasing high prices, veterans die from bottom fishing, and masters die from leverage. Bottom fishing is not fun. At the end of a bull market, there are usually a large number of bottom fishing traps, many of which even avoid high points, sharp drops, and stock market crashes, but die on the road to bottom fishing. So the problem is, shouldn't bottom fishing be? Is there a trick to bottom fishing?

There are three types of bottom fishing; Short term bottom, medium-term bottom, long-term bottom

Short term bottom trick: a three-day sharp decline followed by a rebound;

Mid line bottom tip: Land quantity and price can rebound;

Long term bottom trick: After years of deep decline, love is at the bottom.

Bottom fishing signal:

1. Transaction volume. Anything can deceive people, but the trading volume won't. One day, various indices began to increase in volume, which refers to the trading volume higher than the previous decline process, of course, the larger the better. With trading volume, it means there are funds to buy at the bottom. That's the most direct signal for you to enter. The trading volume must be sustained.

2. Head, shoulders, and bottom. Head and shoulder bottoms usually appear at the bottom of the market. After continuously hitting new lows, the stock price begins to rebound upwards. After the rebound ends, the stock price fails to continue hitting new lows and starts to rise above the previous low point. When the stock price rises, the previous high point, which is the neck line, is the time to bottom out.

3. Arc bottom. At the bottom of the market, the energy of the bears is gradually weakening, but the advantages of multiple forces are not suddenly increasing, but slowly emerging. This often occurs, but it is also difficult to judge. But one characteristic is that the K-line entity is very small, but it gradually increases.

Accurately buy at the starting point:

1、 Three steps high

Three step high: After a period of decline, the stock price forms three bottoms at a low level, and one is higher than the other.

features:

1. Before the formation of this pattern, the stock price must have a deep downward trend, with a decline of more than 2%.

2. The stock price line has always been below the average price line, and there should be no trend of crossing the average price line halfway.

3. The low points of the three bottoms can only be slightly raised, and the total increase of the low point of the third bottom compared to the low point of the first bottom cannot exceed 5%.

be careful:

1. There are two best places to buy.

A、 It is the intersection point where the stock price line crosses the average price line upwards after the formation of the third bottom.

B、 It is the position where the stock price line breaks through the neck line upwards, provided that the stock price line is far from the average price line and the neck line is lower than the average price line.

2. This refers to the stock price line being below the average price line and formed before the stock price line rises to the average price line after the opening.

3. The standard three-step height is one step higher at the bottom. The non-standard three-step high tolerance allows the first and second lows to be the same, while the third one is higher than the first and second lows.