The "turning point" of stock price fluctuations refers to the peak and trough of the stock price. If a stock suddenly experiences unprecedented trading volume on a rising market, but compared to the previous days, the stock price lags behind or only rises slightly. Or when the gap between the highest and lowest prices of the day widens, but the closing price of the day may not necessarily be lower than the previous day's closing price, these signs indicate that the market maker may be selling a large number of stocks or even clearing positions. For these situations, many retail investors cannot distinguish them well, resulting in missing opportunities. In the stage of rising stock prices, after the market maker makes the first large-scale sale, a vacuum state will immediately appear, so the trading volume is likely to shrink, and the stock price will continue to decline thereafter. And the opportunity to identify the peak again, which is also the last time, should be when the first rebound occurs, usually within a few days after the peak. If there is a rebound after falling from the peak for 3 to 5 days, but accompanied by the following signs, it indicates that the rebound is not strong enough.
Firstly, the trading volume has not increased or even decreased compared to the previous days; Secondly, the stock price's upward trend is not strong; Thirdly, the increase in stock price is not as significant as half of the daily price difference during peak hours. If the strength is not enough, the rebound will inevitably not be sustainable. Usually, the first rebound after the market starts to decline will end quickly. The market on the first day of rebound was relatively ideal, but it will decline again near the closing on the second day. Therefore, when the first rebound fails, it is recommended that everyone must further sell their held stocks.
Many investors feel lost when they see stock prices starting to decline from their peak and trading volumes shrinking. In fact, this is a phenomenon that often occurs when market makers sell at high levels. However, when everyone knows that the decline is inevitable, the trading volume will slightly increase, and it is too late to take action only when everyone has a consensus. When there is a possibility of a major drop, investors must compare the stock price and trading volume for each hour with those of the previous day at the same time. When the stock price rebounds for the first time after falling from its peak, it is best to closely monitor the trend of the stock price and also understand whether the trading volume is increasing or stagnant. If the trading volume shrinks, you can sell the stock decisively when other buyers are also interested in it after the stock price has gradually risen for a long period of time.
Use half an hour of opening to judge the trend
In many cases, the trend after half an hour of opening can reveal the overall long short situation of the day. Therefore, by carefully studying the characteristics of the trend after half an hour of opening, one can have a rough understanding of the trading situation throughout the day.
Basic principle: The competition between long and short positions within half an hour of opening basically determines and influences the price views of both sides throughout the day, thus determining the trend of the day. Judgment criteria: Use a 5-minute candlestick chart. Analysis method: Three candles in the first 15 minutes have a 70% impact on the entire day, while three candles in the last 15 minutes have a 30% impact on the entire day. You can consider the three candles in the last 15 minutes as one candle. Adding up 4 candles before and after can predict the basic trend of the market for the whole day.
(1) If there are 4 candles, all pull the candlestick. The trend is extremely strong throughout the day. 15 minutes before and after the noon break may be the relative low point of the day, and the closing price may be the highest price of the day;
(2) If there are four candles, three suns and one shade, the whole day will be relatively strong. It is expected to fluctuate upwards, with the lowest point for the day possibly occurring at 10:30 pm and 2:00 pm, and the closing price may be the relative high point for the day;
(3) If there are four candles, two yang and two yin. The whole day will be a stable or slightly fluctuating equilibrium situation. The peak that is prone to occur is around 11 am in the morning and 2:30 pm in the afternoon. The closing price is not significantly different from the opening price;
(4) If there are four candles, three yin and one yang. The whole day will be relatively weak. The relative high point of the day is around 10am and 1:30pm. The closing price may be a relatively low point for the entire day;
(5) If there are 4 candles, all draw the candlestick. The overall trend is extremely weak throughout the day. At 10:10am and after the midday break, there will be a slight high and a continuous decline. The closing price will be the lowest point of the day.
