How to operate the stock market band?

Short term band operation requires high skills and requires strong technical analysis ability. For beginners, short-term band operation is not suitable. Therefore, beginners need to accumulate time and practical experience to be competent in short-term band operation. The following are the five key points of short-term band operation that we need to remember in daily practice.

　　1、 Be careful of fake breakthroughs by the main force

There are many false breakthroughs in the stock market, which refer to the main force breaking through the resistance level by hitting the limit up and reaching a new high. For technical experts, once they encounter this situation, they often think that the space for stock price increase has been opened, and they rush to enter it. However, within a few days, the stock price not only does not rise but also begins to rapidly decline, even breaking through the level and falling. This is the false breakthrough created by the main force, also known as the long trap. This situation often represents the main force distributing chips at a high level and also represents a bearish outlook on the market in the later stage. Once we encounter this situation, even if we incur losses, we must quickly sell it, otherwise what awaits us may be a long-term downward trap.

2、 Avoid long-term downturns

For many stocks that are highly controlled by institutions, if there is a continuous bearish trend, it indicates that the institutions have started a strategic retreat and are secretly selling every day. This situation is more destructive than a sharp drop and can easily paralyze us. When we realize something is wrong, the stock price has already fallen significantly. This situation often occurs when the stock price is unable to rise after reaching a high level. Therefore, if the individual stock we hold falls and cannot recover from the 5-day moving average within 3 days, we need to quickly exit to avoid being trapped later on.

　3、 Grasp the rebound during the decline process

Even if the stock price is running in a downward trend, there will still be a rebound, and each rebound high point is our best time to exit. We observe through the trend line. When the stock price runs near the upper line of the downward trend line, we should resolutely sell, and buy back when the stock price runs to the lower line of the trend line. By doing so, we can repeatedly profit by creating bands in the trend channel line.

    4、 Breaking the platform quickly

When a major bearish candlestick breaks below an important platform during the stock price's operation, whether it is a bearish candlestick, bullish candlestick, or a cross star, we must quickly exit the market the next day. The faster this sharp drop comes out, the better. However, in the process of the market's decline, if your individual stocks do not fall or slightly fall, you must be careful not to have a lucky mentality, because they will inevitably make up for the decline in the later stage. Even if the stock price recovers, the platform that fell below in the early stage is also an important resistance level, which often becomes the end level of the rebound. This has been verified through countless battles.

　5、 Half position operation at the bottom of the mid-term

Once the market reaches a mid-term bottom, there is often a 30% to 50% increase, and some may even have a doubling trend. However, we must not be too greedy, because even if there is an increase, there will be a technical pullback when encountering early resistance levels. Therefore, it is best to operate in half positions, which can allow us to advance and retreat freely. Once the trend line changes, we should take advantage of the situation and not be greedy for the last bit of profit.