Keeping up with the pace of the main force is the dream of many small players, but the thighs of the main force are not so easy to hold. So what should we do? In practical operations, the most commonly used strategy for following the market is the profit model of rising and falling, as well as replicating the limit up. Today, I saw a teacher share a practical strategy for improving the success rate of following the market, which is very useful in actual combat. Let me share it with you

Main penetration ratio

Recently, many fans and friends have been chatting with me about the issue of upscaling, and I have found a small trick that is very helpful in improving the success rate of upscaling. Perhaps many people are still unclear about this little trick, so today we will take some time to briefly explain it to everyone.

Going up and down to break levels is also a headache for many fans. Although the stop loss range is not large, breaking levels multiple times can be uncomfortable. Especially when choosing between two stocks that have risen or fallen, it is often easy to make the wrong choice.

So today we are going to teach you this method, which can help identify many stocks that have failed to rise and fall back in advance, reduce the probability of breaking through the rising and falling back, and improve the success rate of rising and falling back. With this technique, you can become a master of leveling up and down in the future.

Actually, this content is very simple and straightforward. Firstly, let's learn about a new term, which is a self defined keyword for looking at the main force, called the main force penetration ratio.

Its algorithm is to divide the main net purchase amount of the day by the transaction amount of the day. So that's it

Main penetration ratio=Main net purchase amount/Transaction amount

(1) If the penetration ratio of the main force is less than 10%, it means that the main force did not exert much force today.

(2) If the penetration ratio of the main force is greater than 10%, it indicates that the main force has started to exert force. If this 10% main force buys, it can push the stock price up to 3%, and many of them will close at a bullish candlestick or limit up on the same day.

(3) If the penetration ratio of the main force is between 20-50%, then it belongs to a very strong main force.

(4) If it exceeds 50%, it may also be more troublesome. Because half of the transaction volume on that day was bought by the main force.

However, this is not a one-time solution. The reason why it is more troublesome is that a stock is in a good state where the first main force can cause a follow the trend effect after buying more than 10% on the same day. Other key players are willing to follow up when they see someone willing to invest in stocks. If the trend effect cannot be triggered, the main force can only keep buying, and in the end, half of the funds for this stock on that day are self funded. And if the penetration ratio of the main force exceeds 50%, whether it is one main force buying or N main force buying still needs to be further elaborated. This article mainly introduces the penetration ratio of the main force. If you are interested in further understanding, please continue to follow us and we can explain it in the future.

With the concept of main penetration ratio, many issues can be understood.

The best aspect of the main penetration ratio is that it is a method to observe the strength of stock main players during trading.

During actual trading, look at the trading volume of a stock, mentally calculate what 10% is, and then check if the main net buying amount has turned red. Ignore those that have turned green. Check if it's enough to reach 10% in red, and you'll know if the main force is strong or not.

Of course, during trading, there may also be situations where the penetration ratio of the main force is greater than 10%, the stock price is greater than 3%, and then falls back. However, the benefits of these two signals for increasing the success rate of upward and downward gear shifts outweigh the drawbacks of a downward trend during trading. So, I recommend everyone to observe these two details.