How to analyze the overall trend of the stock market?
1. See the price fluctuation charts of the two markets
(1) Compare the overall market trend with the strength of the market, understand the degree of participation of the main force, including possible situations such as attacks, market protection, suppression, and non participation. Understand whether the relationship between stock volume and price is normal, the actions, authenticity, and purpose of the main force's lifting or suppression. Understand the level of participation and enthusiasm of general investors.
(2) Understand the position and meaning of the K-line on the daily chart. Looking at the weekly and monthly candlestick charts again, understand the level, intention, and status of the main force's participation in terms of time and space.
(3) Pay special attention to individual stocks in the first two periods of increase and the second period of decrease. Understanding which stocks are quietly strengthening, which stocks are already the crossbows of the strong bow, which stocks are fleeing without cost, which stocks are breaking through and starting, and which stocks are in a strong mid market, is a bit like a census, understanding the status of each part, so as to have a basic understanding of the overall situation of the market.
(4) In the process of understanding individual stocks, pick out those stocks that are in a low attack state, carefully observe the time, space, and position experienced by the daily K-line, weekly K-line, and monthly K-line, and exclude stocks that are heavily controlled by the market, stocks that are not deeply involved by the main force, and stocks that are blocked by speculative capital. The remaining stocks should be examined for fundamentals, and it is best to retrieve the latest research reports and enter their own self selected stocks if they meet the requirements.
Look at the stocks with the highest gains in the first two editions, identify which stocks have sector and industry connections between them, understand which industries and sectors funds are flowing into, look at the two boards with the lowest declines, identify which stocks have fund outflows, determine if there are sector and industry connections, and identify the sectors where the main investors are bearish. It should be noted that the appropriate number of boards to look at mainly depends on the size of the current market trend. Many boards should be looked at, and the difference should be based on the two boards before and after.
2. Check your own self selected stocks (including those selected on the same day)
Observe whether the stock selection is going according to one's expectations, test one's stock selection methods, identify any errors, determine the reasons for them, and make improvements. Look at those stocks that have already reached a buying point (the buying point is determined by yourself, and the standards are also determined by yourself). You need to make an investment plan, including how to buy under what circumstances, how much to buy, how much price to buy, stop loss level setting, etc.
3. Observe the overall trend of the market
Mainly analyze the situation of closing yin and yang, trading volume, how it is compared to yesterday, whether the overall volume price relationship is normal, the position and meaning of the daily K-line, and the overall trend of the daily K-line to determine whether to participate in individual stocks, whether there is a midline band, and which level of trend the market is currently in. Look at the volatility of the market on that day, when it is rising and when it is being suppressed, which stocks are rising and which stocks are being suppressed, and what is their impact on the market.
Check the number of stocks with flat fluctuations to determine if the overall market is experiencing normal fluctuations. Understand the performance of the top 10 stocks in terms of circulating market value and their impact on the overall market. If it is not a large cap stock that affects the overall market, identify the sectors that affect the overall market. Understand the meaning of the high and low points of the market on that day, understand the resistance and support levels of the market, understand where the market has suction cups and selling pressure, understand which stocks were suppressed before the market was suppressed, and which stocks stopped starting at the end of the market suppression.