The Learning of Following Zhuang (VI) Practical Skills

The technique for following up and adjusting the banker of Shangzhuang is:
1、 It is necessary to determine whether the market is adjusting or falling, whether it is a moderate market or a large market. When the situation is not clear, do not blindly follow.
2、 When the market reaches a new high with high trading volume, especially when there is a gap in trading volume, it can be followed up.
3、 Compared to the expected value of the adjusted market cap stocks, the expected value is relatively lower and the holding time is shorter, after all, the market has already risen by a big wave. The risk has increased significantly. After the stock price rises sharply, the mid line market makers will distribute it. The banker holds 45% or more of the chips, and it is impossible to clear the position in two or three days. It needs to go through three stages: high distribution, medium distribution, and low distribution.
4、 The strategies for operation are completely different.
1. High level distribution stage:
The strategy of the market makers in this stage is to use the optimistic atmosphere created by the previous efforts and the strong buying momentum of individual investors to quickly withdraw their chips. The basis for its confirmation is to exploit the weakness of human psychology: once a positive outlook on the future is formed, it cannot be changed overnight due to the influence of thinking patterns.
The characteristics of this stage are:
(1) Rapid decline. If the market maker wants to take advantage of the small investors' unfulfilled dreams and escape, they must quickly sell and check the transaction returns to discover that there are groups of large selling orders. The transaction density has increased significantly, and it is not uncommon to drop orders by several price points, or even more than ten price points.
(2) The rebound amplitude is relatively large, often reaching a drop of 0.5 or 0.618. Due to the continued optimism of individual investors, buying is enthusiastic. As long as the banker stops selling, buying momentum will prevail, and the banker welcomes a rebound in order to distribute at a higher level. It not only stops distributing in a timely manner, but also buys in the opposite direction and pushes a large rebound. Strong rebound is a technical trap that market makers often make in high-level distribution.
(3) The trading volume has increased significantly. Both long and short sides engage in a fierce battle, which will lead to a significant increase in trading volume. The bulls are retail investors, while the bears are market makers. It is not easy to identify the high position distribution of the banker. Here are a few points for reference: Look at the number of washouts, and the mid line banker must carry out washouts. If it is the first washout, you may want to continue holding the shares. If there have been two or three washings, 90% will be distributed at a high level.
(4) There are many large sell orders, and there are many sell orders that lower the price by several levels.
(5) There is a clear consumption gap, or a typical M-head.
(6) The increase is quite significant.
The technique of following the market is to sell immediately, without worrying about the price level. Today's low is tomorrow's high. The tricks of the banker are: raising, trapping, killing, and falling. After trapping you, he will use the two most ruthless moves: killing and falling. The best operating principle is to walk fast!
2. Median distribution stage:
After the stock price has fallen several steps, the market makers still have a lot of chips to distribute. The purpose of the market makers in this stage is to attract high selling investors to replenish their stocks, while those who did not board the market before will board. Therefore, the market makers will adopt a completely different approach, which is to slowly and secretly distribute.
Its characteristics are:
(1) First, stabilize the technical level, then gradually distribute. When the stock falls to an important level, the market makers stop selling while clearly protecting the market. Make investors feel that the stock price has stabilized and the storm has passed. The protection provided by the market makers further leads investors to mistakenly believe that it is collecting again, and a new round of upward momentum is beginning, which attracts investors to enter the market. When the market makers saw that the stock price remained stable, they began to distribute slowly and secretly, causing the stock price to gradually weaken and fall.
(2) Draw beautiful W-shaped graphics, take advantage of the warming market, create a rebound, and then continue to distribute. The technique for identifying whether the banker is distributing in the middle or washing the market is:
1、 Judging from whether the market makers at major checkpoints are suppressing or protecting the market, if severe suppression is carried out, it is an attempt to shake out the chips of individual investors, mostly washing away the market; If they come out to protect the market, most of them will be distributed.
2、 Observe the magnitude of the rebound at major checkpoints. Washing out the market makes retail investors feel that the trend is over, so the rebound will be relatively small, indicating a weak rebound; If distributed, the banker hopes for a strong rebound and will buy with a backhand, pushing a larger margin.
3、 If the market breaks through a major hurdle, the market makers who wash the market will buy again. If distributed, there will be no further purchases. The technique of following the market is to firmly ship even if it is in the middle position. Be careful not to chase after the stock price once it stabilizes. Stock investors should pay attention to the principle that the tree wants to be calm but the wind does not stop. Behind the stable stock price, there is a sinister undercurrent of large-scale distribution.
3. Low level distribution stage:
After a significant drop in stock price, the market makers still have a small amount of chips left in their hands, and they will clear their positions and auction them off. The distribution at this time is unique. Its characteristics are:
(1) Publicly distributing, breaking away from the previous sneaky style, there is no more concealment now, with big handed orders frequently appearing.
(2) Focus on key technical positions.
(3) The decline is fast, similar to suppression. The market maker hopes to bring the stock price back to its original position, clear the market as soon as possible, and prepare for the next comeback. Even so, as a stock investor, one should still sell because firstly, once the stock price is not maintained, it will continue to decline; Secondly, it will take a considerable amount of time before a new banker enters the market. The distribution of mid line market makers can range from ten or eight days to several weeks. We should not take it lightly just because the stock price has fallen from a high level.