Band trading can be said to be the best technique for short-term trading profits when the market is weak and volatile. Band trading can exercise investors' flexible grasp of the stock market and macro grasp ability. In the market, only continuous learning can lead to continuous profitability. What we are going to prepare for you today is the technique of trading in stock bands. In any market situation, trading in bands is a magic weapon for profitability.

1、 The basic significance of band lines

The 30 day moving average, also known as the monthly line, is an operating system that intervenes between the short and medium lines. We usually refer to this operating mode as the band operation, and the 30 day moving average is also known as the band line.

The focus of band operations is similar to short-term operations, but not entirely the same. Firstly, the band operation of the 30 day moving average system mainly relies on following the trend as the core of the operation, that is, the right-hand buying and selling principle. However, for buying and selling rebounds, this is not a commonly used operating standard, that is, the left-hand buying and selling principle is only a rarely used auxiliary means. Secondly, the band operation of the 30 day moving average system may experience extreme fluctuations, which can cause confusion for investors in actual practice.

2、 Principles followed for band operation

1. Only select the main upward trend

Operate on stocks that are currently in an upward trend, and never take risks on stocks that are clearly in a downward trend; It is best to buy when the main upward trend is good, intervene as soon as the turning point of the intermediate upward trend appears, and sell as soon as the main trend encounters resistance and falls back; It is relatively safe to intervene in stocks that have been trading at a low level for a long time during the initial phase of increasing volume.

2. The overall market is a barometer for a stock

When buying and selling, it is important to pay attention to the overall trend of the market. It is best to stop trading in bands when both the main and secondary trends of the market are downward. If there is indeed a medium to long term upward trend in stocks that can be bought, the position should also be relatively light. When the entire market is experiencing a sharp decline, it is necessary to pause this operation; However, after a few days of major market downturn, if you seize the opportunity to quickly engage in wave like operations, you are bound to make even more profits.

3. Only buy and hold at the bottom just started

Stocks that have just exited the bottom zone and whose stock prices have doubled in a short period of time are generally not eligible for participation; The market makers of individual stocks will only experience a significant increase after sufficient fundraising and market washing, and should never participate in any uncertain initial adjustments.

4. Strive to learn technical analysis theory

Continuously improving one's level of analysis, judgment, and practical skills, with full confidence, will lead to a good mentality, stable emotions, and the ability to see language that is difficult for ordinary technical analysts to decipher from graphics. Never trust hearsay and stock analysts. Only by constantly improving one's trading system and enhancing one's trading skills can one find the golden key to opening the treasure trove of wealth and earn the money they deserve.

3、 Band operation:

1. Dual bottom waveform band operation

Purchase conditions for operation:

After a long-term decline in stock prices, the volume can shrink to the local level, the rebound volume can significantly increase, and the pullback volume can significantly shrink. There is a serious low-level passivation or divergence between price and technical indicators, and the more passivation or divergence occurs, the more reliable it is.

(1) When the rebound returns to the previous low point and is supported by increased volume again, it is the first buying point.

(2) Breaking through the resistance level of the neck line during a large volume increase is the second buying point.

(3) After breaking through the neck line and rising for a wave, if it cannot break the neck line and continues to increase in volume, it is the third buying point.

2. Band operation of circular bottom shape

Conditions for buying:

The bottom of the arc appears at the end of the market downturn. The condition for judging the bottom of a circular arc is that the market changes from a sharp decline to a slow decline, and then from a slow rise to a gap and surge, with a gap and surge being the sign of the completion of the bottom of the circular arc. The only reliable buying point at the bottom of the circular arc is the gap where the volume increases significantly. The longer the time it takes for the arc bottom to form, the higher the reliability and the greater the upward trend. If the medium to long term moving average is upward, the reliability of buying is higher.

Precautions for band operation:

1. Stocks with unlimited innovation and high volume should be given special attention, while stocks with abnormally high innovation and high volume should be cautious.

2. Short term stock corrections with increasing volume as they fall should be a good opportunity for a rebound; Of course, this does not include stocks that have fallen to the board or stocks that have experienced a large volume decline at the top.

3. The sharp decline is a significant opportunity. The sharp decline can be divided into a general market crash and an individual stock crash. The chances of a bearish decline are much fewer than a sharp decline, which often presents significant opportunities.

4. A sharp drop is often caused by major bearish or accidental events. A sharp drop that occurs at a relatively high point in the market should be treated with caution, but attention should be paid to the main downtrend or a sharp drop that occurs after a long period of bearish sentiment, because many bull stocks have the opportunity to fall out.

5. The combination of thunderstorms and scorching sun is always a myriad of phenomena in the stock market.

Stock trading is not a gamble on luck, there is no technique or method that can easily lead to losing control. Surviving tenaciously in this market is by no means an easy task. There is no bad market trend in the stock market, only bad operations. Every market fluctuation is a capital feast and also the best investment opportunity.