How to identify the main force among over a thousand stocks is the key to making money. Being able to detect early and accurate signs of the main force's position building, follow the main force, keep a close eye on the market, and intervene when the pullback is about to start (as observed from the time chart), the returns can be imagined.
The main operation of a stock often has the following characteristics:
Firstly, during the low period, a small amount of horizontal trading is placed on the intraday chart for a certain period of time to pull out a long bullish trend, followed by random horizontal trading and a downward trend (the limit of the downward range is 15% of the upward trend. For example, a stock that is pulled from 4 yuan to 4.2 yuan will appreciate by 4.2-4=0.2,0.2, which is 15% of the downward trend at 4.17 yuan). Then, it quickly rises to complete the second wave, which may reach the limit up. Looking at similarities on the daily candlestick chart. The fact that the main force can easily pull out a long yang or limit up with very little capital indicates that the main force has collected enough chips and has basically controlled the market, and can quickly pull out of the cost zone. This is the beginning of a bull's head rise.
Secondly, the trend of a stock, whether it is a intraday or daily candlestick, is not influenced by the overall market. If you fall, I will grow; if you rise slightly, I will rise sharply; if you rise sharply, I may fall and go my own way. The trend is absolutely independent. This indicates that most of the chips have fallen into the hands of the main players. The purpose and reason for doing this is: 1. If there are floating chips smashing the market, the main force will hold the chips and seal off the downward space to prevent cheap chips from being snatched away; 2. There are speculative investors vying for market share, but due to various reasons, they still do not want to initiate the market trend. As a result, fierce market crashes occur, blocking the upward space of stock prices and preventing short-term stock prices from rising. This is mainly because after the first wave of price increases, the main players need to observe the follow-up of retail investors, observe whether there are other main players competing for market share, and prepare for the next wave of price increases to recuperate and avoid disrupting their trading plans. The K-line pattern of stocks during this period has shown horizontal consolidation, slight fluctuations along the moving average, and slight upward or downward movements.
Thirdly, the intraday trend of stock prices fluctuates sharply, with huge fluctuations in stock prices and small trading volumes. This indicates that the main force has entered the later stage of chip collection, with the purpose of washing away short-term profit orders and undermining investors' confidence in holding stocks. I am often washed out at this time, which is why people say 'once I sell it, it goes up; if I don't sell it, it doesn't go up'. This is because the main force deliberately uses a small amount of chips to create an image and strike at the weak followers. The daily candlestick chart shows that the stock price fluctuates, but it always fails to break through the top or bottom of the box. The daily intraday trend chart shows significant fluctuations. The price difference between buying and selling is also very large, and the trading volume is extremely shrinking. The upper level shows light selling pressure, while the lower level indicates strong support and fewer floating chips.
Fourthly, this is the most obvious point, that is, when faced with negative pressure, the stock price not only does not fall but also rises, that is, it falls on the same day and closes with a strong yang the next day, and the stock price quickly returns to its original level. There are two situations: first, when the main force encounters a sudden profit air raid and is caught off guard, retail investors sell while the main force can only go around. Generally speaking, this indicates that the stock price has not yet left the main force's cost zone. Therefore, the market can see a negative impact on the day of the attack. After the opening, there are many sell offs and more take offs, and soon the sell offs decrease. The stock price stabilizes and gradually increases, fearing that retail investors may find cheap chips. The next day, the stock price is quickly pushed up to its original level by the main force. 2、 The main force takes advantage of negative factors and skillfully implements customer drive orders.
