As one of the ways of public investment and financial management, stock investment has been recognized by the majority of investors, and investing in the stock market has become a fashion. Investors want to make a lot of money in the stock market, but as an investment, there are profits and losses, and the proportion of losses is often relatively large. Some investors may think that making money in the stock market is nothing more than buying low and selling high, and then repeating the operation to make continuous profits. This seems to make a lot of sense and is true. However, this is not the case, and many times it is often not bought at a low point but sold at a low point; I didn't sell it when I should have sold it, and I didn't buy it when I should have bought it.
The reason for investment mistakes is that investors don't know how to grasp the buying and selling points. In other words, investors do not have a clear concept of when to buy and when to sell, let alone a reasonable stop-loss and take-profit plan, which is very dangerous in the stock market. In addition to paying attention to the numbers that change from time to time on the books, it is more important to pay attention to the risks and opportunities that come at any time, that is, to pay attention to the prompt signals of buying and selling points, only in this way can we be comfortable in the stock market, relax and achieve stable profits.
The first type: the yang line holds the yin and is poised to rise
When the stock price has experienced a wave of decline in the early stage, there is a solid yin line and a solid yang line in the two trading days before and after, the yang line is after the yin line, and the position of the two is the same or similar, the yang line is longer than the yin line (including the highest price and the lowest price), this is a bottom reversal pattern - the yang hugging yin pattern, which usually indicates that the previous trend of the stock price has ended, began to enter the reversal pattern, the bulls began to exert force, and the bears gradually withdrew from the market.
Case Study: Analysis of Buying Stocks by Yang and Yin - Mega Shares (300695)
As shown in Figure 1-1, the stock price of Zhaofeng stopped rising and falling in the early days, falling sharply from around 70 yuan to around 52 yuan to stop falling and rebounding, but the rebound was not strong, and soon turned into a downward market. The decline showed a slow downward trend, when the stock price fell to around 50 yuan, the stock price stopped falling sideways, does the sideways mean bottoming, the market rebound?
As can be seen from the above figure, Zhaofeng shares closed out of the yin line and yang line respectively two days before and after, and the yang line entity wrapped the yin line entity, forming a typical yang line holding yin pattern, which is the bottom rebound signal, indicating that the stock price has bottomed out and the market will rebound.
As shown in Figure 1-2, looking at the two-day tick chart, we can see that the 9th and 12th showed two completely different trends. On the 9th, the bears had the advantage, and the stock price fell all the way, running below the average price line all day, and on the 12th, the bulls had the advantage, and the stock price rose all the way, running above the average price line all day. In addition, there are obvious signs of buying and selling large orders in the intraday, indicating that the main institutions are involved in controlling the market, and the market outlook is bullish.
As shown in Figure 1-3, the K-line trend of Zhaofeng shares, after the appearance of the yang and yin line, the stock price briefly consolidated for 3 trading days, the K-line appeared five consecutive yang, and the stock price turned into a rising market, and the stock price rose sharply. The share price rose from 48.08 yuan to 64.07 yuan, an increase of 33%. It can be seen that the bullish candlestick holding the yin is a strong bottom reversal signal.
Note: In the choice of trading timing, we should not only consider the factors of volume, but also consider whether the yang and yin pattern will be far away from the long-term moving average, and whether it will be resisted by the short-term moving average. If, at this time, the pattern does not establish short-term MA support and is not far from the long-term MA, then we can choose to wait and see until the stock price has established short-term MA support, and then choose the right position to buy.
Only when the stock price is determined to be supported by the short-term moving average, when the stock price falls below the moving average, it will get more attention from the bulls, because at this time the cost price will be lower than the cost price of the early purchase, and the bulls will not miss this excellent opportunity to open a position at the bottom.
The second type: double needle probe, the moving average is stable
In the stock market, the double-needle bottom probe is a relatively common and efficient bottom rebound or bottom probe K-line signal, which consists of two K-lines with a long lower shadow, the body must be much smaller than the length of the lower shadow, and the lower shadow of the two K-rays is in the same or similar position. When this kind of bottom K-line combination signal appears, the probability of a short-term reversal of the stock price is extremely high. At this time, we can buy with confidence, because the previous low has been formed, the stock price will form a rebound at the bottom, whether it is short-term or medium-term and long-term, it is an excellent time to buy, and there is only one opportunity, which is very rare.
The significance of the operation of the double-needle bottom probe is as follows:
(1) This is a very important bottom reversal signal, and the buying point of short-term operation is obvious after the double needle bottom.
(2) The premise of the double-needle bottom is that it appears on the way down the stock price, and the key is that the lowest price of the stock price is basically the same, showing the strong support for the stock price below the market.
Case Study: Analysis of Buying Stocks at Double Dip - Bank of Ningbo (002142)
As shown in Figure 2-1, Bank of Ningbo fell from a high level in the early stage and then entered a period of consolidation, with the stock price fluctuating back and forth between 15.5 yuan and 18.5 yuan. In the process of consolidating the stock, there was a bottoming needle pattern on the 20th, and the stock price was close to the bottom of the previous period, but the trading volume showed a shrinking trend compared with the trading volume at the bottom of the previous period, and shareholders should not enter immediately.
On the 21st, the stock again formed a bottom at the bottom, and it was close to the bottom on the 20th. At this time, the stock price is seriously below the 5-day and 10-day moving averages, combined with the bottoming needle that appeared on the previous trading day to form a double-needle bottoming pattern. At this time, the stock price has hit a new low during the consolidation period, so this is a once-in-a-lifetime opportunity, and the time for investors to buy has come.
As shown in Figure 2-2, from the 20th and 21st time-sharing charts of the stock, investors can find that the stock price opened sharply on the 20th, and then rose above the moving average, and operated stably, and shareholders can buy when the stock price rises in volume. On the 21-day time-sharing chart, the timing of buying is the same as that on the 20th, and it is actively bought when the stock price stops falling and the volume rises.
As shown in Figure 2-3, the K-line trend of Bank of Ningbo, as can be seen from the chart, after the emergence of the double-needle bottoming pattern, the stock price stopped falling and stabilized, and then turned into an upward channel, and the stock price rose amazingly, from 15.38 yuan to 24.59 yuan, an increase of 59%.
Actual buying strategy: double needle bottom is a rare opportunity, the first bottom needle provides a minimum price, and the second bottom needle is to reconfirm the bottom of the first needle, if close to the price, the selling power is once again overwhelmed by the buying, then, at this time most of the situation will have a strong rebound trend, we are impossible to give up this opportunity, otherwise will buy the stock price at a higher cost, which is obviously not cost-effective.
After the occurrence of the second dip, the market will gradually pay attention, and if we miss this opportunity to buy the dip, we can also choose to buy at a price that is significantly lower than the 10-day moving average. Although the profit is reduced, it is also cost-effective to give up the small profit for the sake of the later profit.
Pay attention to the timing of the double needle bottom: when the first bottom needle appears, it indicates that the stock price is gradually approaching the bottom, but there is still room to fall, and we should not rush to buy at this time. And when the second bottoming needle appears, it may be two trading days before and after, or it may be several trading days apart. When a double dip occurs, the probability that the stock price is about to reverse is very high.