Trading strategy: Capturing the starting point that will not rise
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Implementation to the specific look and analysis skills, capture will rise to the start of the critical point, you can start from the following three aspects.
The bottom pattern is an important sign of new capital intervention. As long as a stock to maintain a certain price, there must be funds in the inside "hold", otherwise the price will become 0. But holding the stock is the old money or new funds, which for its future rise and fall in terms of value is completely different. The old funds remain inside, the situation is completely passive, you do not know whether it is willing to continue to stay, or can be thrown out at any time. But the new funding situation is completely different. Since it came in, the aim is of course to keep the stock up. Therefore, it is of great significance to analyze whether the old funds or new funds are used to maintain the stock price by looking at the disk. To put it simply, we should follow the new capital.
The bottom form is an important basis for judging whether there are new funds involved. When the stock price goes down, the money keeps flowing out, when will it stop falling and build the bottom shape? Only new funds came in to halt the stock price decline. In theory, new funds will have to leave a trail of entry, and this trace will have a significant "disturbance" in the stock price movement. The most typical case of this disturbance is the appearance of a bottom shape. After a long fall, and the impetus to build a true bottom shape must come from new capital, it is not that new funds will only intervene at the bottom. Once the opening is completed, new funds are injected and the stock is pushed higher. What we want to emphasize is that the new capital will have a bottom shape. Therefore, in order to pursue the "one buy on the rise" investment realm, in the emergence of the obvious bottom form of the stock in the search, the probability is relatively large.
As for what is the bottom shape, this is a technical analysis of the problem, including V-bottom, double bottom, head and shoulders, triple bottom, latent bottom and so on.
Moderate and orderly volume is a symbol of the scale and continued involvement of funds. Even with new funds coming in, whether such funds can end the stock price decline and bring a sustained rally, whether it has enough strength, and a firm approach to the road is of special significance. Therefore, in addition to finding new funds to enter the "traces", but also to determine the strength of such funds and the direction of operation. The strength of capital, mainly through the change of the relationship between price and quantity to grasp.
After the formation of the bottom, the volume changes usually reveal the operation intention and strength of the new funds. Generally speaking, moderate, orderly and continuous volume, usually indicates that the funds are prepared, the strength is very strong, the goal is firm. On the other hand, if the volatility of the volume is irregular or pulsing, the new funds may simply take one vote or the situation changes, and the new funds will not play the stock. Irregular fluctuations in turnover, sharp fluctuations, usually reflect the nature of the funds is to do short-term "over the River Dragon", or the strength is very limited.
It is an important method to judge whether the new capital is in the power, or if it is determined to be long after entering the trading volume fluctuation curve. The perfect, sleek and gentle turnover upward curve usually indicates that the new funds have enough strength and confidence to push forward the rally. To apply a "military fan" to judge the performance of a fighter plane, to see if its shape is perfect, there is an approximate understanding. After the appearance of the bottom shape, and then with the perfect volume upward curve, "a buy on the rise" chance will be greatly improved.
To determine whether the funds involved in the active or passive nature, the main look at the shape of a single candlestick. With new money coming in, and the strength of the new money, the next problem is to look for the "perfect moment" that will start but not yet start. It's no use getting in too early, because you may not get to the "Day of liberation"; it's too late to go in, and the share price has gone up a long way, which is usually the most lucrative section. The shape of single candlestick is of particular importance in capturing the timing of initiation.
In general, in the form of the bottom and the volume of cooperation under the conditions, when the funds to start attack, usually there will be a tentative offensive process, which is known as the "test disk" process. The test plate will leave a mark on the daily Candlestick. For example, the day of the upper shadow Line is longer, or the day candlestick formed a small yin Yang small Doji star State. Especially after the formation of the bottom of the upper Shadow Line test, which is often a very obvious test disk signal. In general, after the bottom form of this upper shadow line, is the market can start at any time an important signal. The bottom of the vanguard temptation, to seize the "one buy on the rise" of the moment, has a clear sense of the starting gun, deserves full attention.
For investors, the most enjoyable thing is to buy, immediately enjoy the joy of making money. If the above mentioned three aspects, the realization of a buy on the rise in the risk of investment realm, can be greatly improved.
Trading strategy: Capturing the starting point that will not rise