The main rising wave refers to the period when the main capital has significantly established positions, followed by a significant sell-off, leading to a significant upward trend in the market, with a focus on the areas where the main capital's returns have risen. The main rising wave market is the largest profit stage among individual stocks, and investors can obtain huge returns in a short period of time. As long as they can keep up with the main uptrend, investors can gain most of their profits at this time.
How to capture the rising trend of the main market?
Characteristics of main rising waves:
1. Individual stocks have already experienced a certain degree of upward movement in the early stages, but the upward pace is relatively cautious and the trend is also relatively gentle;
2. The position of stock prices is not very low, and some stocks may still have their highest prices during this period, while others may continue to rise on the basis of historical highs;
3. Before entering the main uptrend, stock prices often experience sideways consolidation, sometimes with small fluctuations or sometimes showing an upward triangular trend. However, either method requires a consolidation process.
4. In terms of trading volume, except for showing a huge amount in the early stage, the trading volume in the later stage is opposite to the early stage, gradually decreasing, and the trading volume before the start is very small.
Stock selection techniques for main rising waves:
1. In the early stages, there was already a slight increase, but the magnitude of the increase was relatively flat;
2. Stocks that enter the main uptrend market often undergo sideways consolidation in the early stages;
3. In terms of trading volume, except for the initial release of huge amounts, the trading volume generally shrinks in the later stage, and the trading volume before the launch is relatively small.
Operation skills for main wave raising:
1. The construction of the main rising wave follows a temporal pattern
In the early stages of a bull market, there is basically no formation of a main uptrend. When the market gradually improves, it is mostly the stage where many stocks rebound and the main players begin to build positions. At this time, there will also be no main uptrend.
2. The MACD indicator has obvious strong characteristics
In the trend of the main uptrend, the MACD indicator has a very obvious strong characteristic. The DIFF line has always been above the DEA, and both lines usually rise in a parallel pattern with Shanghai. Even if the market has a strong adjustment, the DIFF cannot effectively cross the DEA indicator line.
At the same time, the red bar of the MACD indicator is also in a continuously increasing market trend. At this point, we can prove that the main uptrend is rapidly starting.
3. Random indicator KDJ repeatedly passivates at high levels
In a balanced market or a downtrend, random indicators should be prepared to sell stocks as long as they enter the overbought zone. As long as there is a high-level passivation, investors should immediately clear their positions and sell.
However, in the main uptrend market, the application principle of random indicators is exactly the opposite. When random indicators repeatedly experience high-level passivation, investors can persist in holding shares and maximize the returns of the main uptrend. And when the random indicator falls to the oversold zone, investors must be careful whether the main uptrend is about to end soon.
Before delving into practical case studies, I would like to say more about seizing the main uptrend market mentioned todayStock trading is actually very valuable. Of course, mastering one or two of various forms proficiently can bring great gains. However, personally, it is recommended to learn more about stock trading knowledge. The market trend is volatile, and having twice as much knowledge as others can earn more wealth. It is necessary to have solid basic skills and some practical examples to explain.