In the market context where the phenomenon of individual stock differentiation is becoming increasingly apparent, capturing stocks controlled by strong main players can often improve the success rate of operations. And stocks controlled by strong main players often experience abnormal movements, which may be an opportunity or a trap. The following common situations should be carefully identified.
1. Release a huge amount and jump low. Some stocks may experience a drop of more than 5 percentage points, with millions of shares traded through call auction. Generally speaking, this indicates a signal that the banker is not out and is now ready to move up. At this time, a significant gap or low opening is a behavior of shaking the position and washing the market.
2. Unexpectedly, it jumped significantly high. Some stocks did not hit the limit up on the first day, but opened significantly short the next day. There are two possibilities, one is the banker's trial trading action to see how many sell offs are above. One possibility is that the banker, in order to attract attention and facilitate distribution, may open high and go low.
3. At the end of the day, the heavy trading pressure caused the K-line to be a long bearish line, but it easily rose back the next day. This is a typical behavior of shaking up and liquidating stocks. If the 30 day moving average shows a clear upward trend at this time and the stock price has not increased significantly, it can be further confirmed that the main force is suppressing.
4. Without reason, there is an abnormal increase in trading volume, creating signs of market turnover. The trading volume is characterized by a large number of buying and selling orders of thousands of lots appearing simultaneously, accompanied by large transactions of thousands of lots, with a daily turnover rate of over 20%, but the stock price is clearly stagnant. This is usually done by the main force in order to attract buying from retail investors, deliberately creating the illusion of a prosperous market. Here, we need to observe whether the 30 day moving average is rising and whether the OBV indicator is rising. If neither of the above two conditions is met, we will resolutely not participate.
5. During the trading session, there was a 45 degree upward trend or a gentle slope, with the daily candlestick being a continuous small bullish line. However, there were occasional sudden drops during the trading session, forming a "fishing rod" trend. It's okay to appreciate these types of stocks, but it's best not to participate.
When stocks experience abnormal movements, be careful not to only look at the surface phenomena, but to think from the perspective of the main force. The military law says, 'If it is virtual, it is real, but in reality it is virtual.'. The same applies to the stock market. If you can't understand what the main force is doing, then don't participate. This can also be considered as a kind of 'great wisdom but foolishness'.