Main control refers to the concentration of positions that control a large amount of liquid chips in a certain stock, thereby greatly reducing its normal liquidity. In actual trading, investors often do not need to look at the moving average, but rather at the daily K-line arrangement of the stock. As we all know, in the late stage of the market, Zhuang stocks tend to form a stalemate trend, which means that there is no possibility of increasing positions and they cannot successfully sell in a short period of time. This often leads to a trend of close parallel arrangement of daily K-lines. This phenomenon can be vaguely understood by comparing the trends of many famous Zhuang stocks in the market when forming a high-level consolidation pattern.
The short-term moving averages are stuck together for a long time, and the intraday volatility of the daily K-line is very small. The rise and fall of each trading day is also very small compared to the previous trading day, which is often a manifestation of excessive concentration of liquid chips. The intraday trading of such stocks is often not continuous, but intermittent or jumping. Sometimes, from the daily and hourly trend chart, there may even be characteristics similar to fund trends. The stock price keeps shuttling up and down slightly during the intraday trading, as if there are strong constraints on both the upper and lower positions.
The relatively concentrated state of liquid chips does not necessarily mean a very clear bullish or bearish meaning for the stock price. This needs to be judged separately according to different operating cycles. For stocks that have undergone sufficient speculation and the stock price is already at a relatively high level, if such a trend occurs, and the daily K-line is closely arranged in parallel while the center of gravity of the stock price is slowly and steadily declining, it indicates that the stock may have shipment risks at any time, and it is necessary to pay attention to avoidance techniques in operation. In the actual market, many recent stocks that have revealed high-level risks have shown similar trend characteristics,. However, for other individual stocks, such as those that have not experienced any speculation in the market for a long period of time, if the daily K-line closely aligns at a low platform position, it indicates that the chips of the stock are becoming increasingly concentrated at the low level. This is a signal collected by the main force, and the main force's position building process has been basically completed. This is a stock that can be followed up.
How can investors distinguish whether this main control signal is beneficial or harmful? I think this needs to be considered from two aspects: historical market cycles and changes in trading volume. For controlling stocks with shipment risks, the trading volume tends to shrink when the daily K-line is closely arranged. However, this shrinking pattern is uneven and often accompanied by sudden increases in short-term trading volume. The fluctuation of the daily K-line intensifies and then returns to calm. This is often the language of the market where the chips of the market makers retreat in batches. When investors encounter this trend of such stocks, the best choice is to exit during short-term price increases rather than blindly chasing after the rise.