Buying and selling stocks is a highly practical investment activity; It is an accumulation of experience, lessons, and even a bloody and profound reflection activity; It is an activity of accumulating skills and enriching knowledge. It can be said that the knowledge of stock trading is endless, and one can learn from it all the time. In the stock market, investors also have many rich skills, and it is very important to frequently communicate and experience with each other. However, the stock market is constantly changing, and some techniques may fail, but some classic techniques may be useful for lifelong stock trading for investors. Because the key to hype is the coexistence of commonalities. Some special and emerging techniques will be captured and summarized in practice at any time, so that investors can stand undefeated in the ups and downs of the stock market.
GAP analysis
When the stock price undergoes drastic changes, a series of gaps will arise. Every gap will reflect the movement signs of the main force. The stock market generally experiences several gaps during its rise and fall cycles, such as start-up gap, rise gap, pull up gap, delivery gap, kill gap, and stop gap. Through these gap features, we can roughly infer the movement signs of the main force.
1、 Start gap
After at least half a year of consolidation in the stock market, the main force suddenly took the opportunity to exert force, and the stock index (price) jumped from the bottom of long-term consolidation, with increased trading volume. At this point, the first sign of the main force starting to go long on the candlestick chart is the opening gap. At this point, investors should consider following up on building positions.
2、 Rising gap
After the main force completes the start-up gap, it still needs to go through a necessary sorting process on the way up, with the aim of clearing the floating chips out so that they can move forward with light equipment. Afterwards, the main force exerted force again, and the trading volume steadily increased. The stock index (stock price) broke through the start-up gap platform and exerted force upwards. At this point, there is a second sign gap on the candlestick chart that the main force is starting to go long, which is the upward gap. Shareholders should consider continuing to hold positions at this time. Never be dismounted by the shock.
3、 Raise the gap
After completing the necessary consolidation on the way up, the main force quickly advances while fighting, with the aim of attracting external funds and funds that have been shaken out of the market to lift the sedan and prepare for escape. At this moment, the main force is exerting fierce force, increasing trading volume, and even ignoring warnings from management and various negative news, with a resolute long face, giving people the impression of giving up on anyone else. At this moment, the stock index (stock price) is in a strong momentum, reaching new highs and continuously hitting the limit up. Stock analysts also cooperated with the main force to make bold long positions. At this point, there is a third sign gap on the candlestick chart where the main force continues to go long, which is the widening gap. Stock investors should remain calm and constantly consider closing their positions. Never chase after Gao Shangma again. If we look at it from the perspective of the principle of closing positions as soon as possible, it is best to close them in advance.