Stock trading techniques:
1. Follow up on breakthroughs in volume
Let's take ZTE Corporation as an example. In the early stage, the stock price broke through the pressure of the previous box with a large volume of bullish candlestick, and the chips were concentrated at peak and low levels, indicating that the space for the main upward trend of the stock price has been opened up. Then we can see the stock price soaring all the way. Therefore, if you see a stock breaking through the platform pressure with a large volume of bullish candlestick, remember to pay more attention and there may be unexpected gains. Similarly, we can see that the recent case of satellite petrochemicals was selected in this way, which is the role of technical analysis.
2. If you want to increase volume at a low level, you need to follow, and if you follow incorrectly, you also need to follow
Low level volume trading is a good thing, usually as a sign of capital intervention to attract funds and main players trying to sell. Judging from the magnitude of selling pressure, there is a high probability of a later upward trend. Taking the recent example of Longhua Energy Saving, we can see that the reason we paid attention to this ticket was because the stock price had fallen from 11 yuan to 5 yuan, and the trading volume began to increase around 5 yuan. At this low level, it is typical for main funds to start intervening. Otherwise, retail investors would not have the ability to have such a large trading volume. Therefore, we can see that the stock price has been continuously shifting its center of gravity recently, and the band returns are also very good.
3. If you have no quantity at a high level, you should take it, and if you take it wrong, you should also take it
High level refers to the stock price being at or near historical highs, with an unlimited sideways trend at high levels, which is a typical upward trend and should not be easily eliminated at this time. Only after observing for a period of time and discovering that trading volume shrinks severely during high-level sideways trading, and often rises with quantity but falls without quantity, can we truly determine that a new market trend has emerged when we can break the balance and rise again. Everyone can see that Hongte Precision is a good example. The stock price doubled in volume during the early stage, and then consolidated at a high level without volume. It should be noted that in such a situation of shrinking volume, the main force has no room to sell, so we see that after a period of consolidation, the main force rises again.
After discussing buy signals, let's talk about wait-and-see and sell, which are equally important to avoid buying in places we shouldn't be buying
4. If there is no quantity at a low level, we have to wait, and if we wait wrong, we also have to wait
The reason for the lack of quantity is that the main force is not yet ready to rise and is constantly absorbing a large number of chips at the low level. Once the fundraising is almost done, there will be a rise. When the stock price increases significantly due to high volume, let's take a look at the Wanderer as the best example. Why do we always advise everyone not to take action? It is because the trading volume has not increased and the pressure of the box has not been broken. You don't know that the main force needs to oscillate and attract funds at a low level for several months, and it may not rise for three months. Why not wait for the volume to break through before intervening.
5. If there is a high level of volume stagnation, we must run, and if we run wrong, we must also run
After experiencing a significant increase, the stock price has been at a high level, but the trading volume continues to increase, but the stock price has remained stagnant, indicating that there has been a phenomenon of high volume increase and price flattening. It is likely that the main force has started to sell, indicating that the willingness to lock in profits through profit taking has become very firm, and investors should leave in a timely manner. In the early stage, the old demon stock Zhezhong Shares saw a record high trading volume in the second wave of rebound after the first wave of rise, but the stock price did not rise much and instead fluctuated at a high level, typical of the main force selling. Later, we saw that the stock price fell all the way and trapped many investors.
6. Deviation between high volume and price, exit as needed
After experiencing a significant increase, the stock price has reached a high level and continues to rise. However, the trading volume has not continued to increase but instead continues to shrink, fully indicating that the momentum of the upward attack on the stock price has been digested. It is like the bottom of a car's fuel tank. At this time, do not hesitate to sell resolutely. Taking Western Construction as an example, during the slow rise of the stock price at a high level in March, we can see that the trading volume continues to shrink, which is a typical deviation between volume and price. At this time, we should pay attention to avoiding risks.
There are also two special volume price relationships. Under the limit up and limit down system, the first unlimited limit down of a stock will continue to fall in the future until there are a large number of occurrences before it can rebound or reverse; Similarly, the first unlimited limit up of a stock will continue to rise in the future until there are a large number of occurrences before it can rebound or reverse.
This is the characteristic of A-shares. We all say that increasing volume and adjusting volume are healthy, but we need to pay attention to two extremes. I won't say much about buying at the limit down, but mainly about buying at the limit up. Last year, on September 30th, the stock price of Lutianhua continued to rise after reaching the limit up the previous day and showed a strong trend of limit up and contraction. The limit up and contraction meant that there were few people selling, and those who held positions were very reluctant to raise funds. Therefore, on the next trading day, we decisively called for a call auction to raise the limit up and buy. At that time, some friends also received several consecutive limit up boards, such as yesterday's limit up and contraction of the two-sided needle, which opened high and performed well today.