How to determine market operation trends

When will the stock market reach the summit? When should I sell the stock? In fact, the answer is very simple. Stock trading must comply with the market trend. Only the trend is the beginning. As long as the market trend is upward, stocks will be firmly held. When the trend changes, stocks will be sold and profits will be fulfilled. Although it is easy to say, many investors, especially new investors, lack experience in judging trends.

Trend is one of the four cores of technical analysis. market movement can be divided into two types: trend-free and non-trend-free. Once the market forms an obvious trend, the market often evolves in the direction of the existing trend, and the probability of Reverse Running is relatively small. Therefore, before the reverse trend shows signs, investors should take advantage of the trend so that their operations can be in harmony with the market, so that their investment can be easily pushed by the water.

There are three methods to determine the direction and reversal of the trend:

Use leading indicators to analyze and determine trends

Leading Indicators include leading stocks, weighted shares, and leading stocks.

Leading stocks often have the operation of the main fund, while market research and Determination of large funds are often highly forward-looking, and their operation orientation also has a strong guiding significance for the market.

The role of heavyweights lies in the market influence. At present, the influence of the entire heavyweights is increasing. In the future, the trend of heavyweights in a certain period of time will greatly affect the operation direction of the dashboard, it will also affect the evolution of the trend.

Leading stocks refer to stocks that start or fall first. Investors often disagree with the market, but some institutional funds and investors belong to the precognition type, and their operations are highly forward-looking, following the operation orientation of these funds will make it easier to grasp the trend direction.

Use the moving average to evaluate the trend

To adapt to the direction of the moving average, you can often grasp the direction of the trend to a certain extent.

There are two kinds of conditions for the average, that is, the long and short positions of the average. Investors can follow the trend, regardless of the multi-headed arrangement during the rise or the short-headed arrangement during the fall. At this time, the direction of the stock price is consistent with that of the moving average.

When using the moving average for trend analysis and determination and playing its guiding role, the key is to pay attention to the direction of the medium-and long-term moving average. When the long-term moving average shows a short position and continues to decline, investors should operate less or not to reduce the number of shares held, and sell the majority. When the long-term moving average shows a multi-headed arrangement and continues to rise, investors should increase the number of shares held and take the dominant role in buying.

Use trend line to analyze and determine trends

If the stock price runs in a low-to-low mode, the drawn trend line is the rising trend line. If the stock price runs in a high-to-low mode, the drawn trend line is the descent trend line.

In the process of analyzing the trend, investors should follow the principle of ascending to short. Analyze the long-term trend first, then the middle trend, and then the short-term trend. The medium-term trend is crucial, investors are easy to grasp, and the real-world trend is also the strongest. Therefore, you can start with the mid-term trend when analyzing the learning trend.

Based on the trend line principle, parallel channels for stock price operation can also be evolved. When the stock price has been running for a long time in a channel based on a certain trend and eventually breaks through the channel, the gradual inflection point of the trend will be formed.

The trend line can help investors follow the trend, look for the price movement trend, buy and hold at the rising trend; Hold the currency without buying the stock at the falling trend.

To sum up, the operation trend of the market is very important. Only by "Sailing" and avoiding "sailing against the water" can we achieve long-term and stable benefits.