China s stock market Keep in mind the mantra of buy with a long lower shadow and sell with a long u

Mondo Finance Updated on 2024-02-26

**Enlightenment, its process is the same, from seven losses to two flats and then to one profit, it is nothing more than to be distracted and not greedy for all kinds of profit models; Firmly do this kind of trading system, and over time this kind of system will become your ATM.

**There are no established guidelines for operation.

To make a profit, you have to establish your own rules.

When it falls, there is a reason for it to fall, and often**the** will fall lower and lower.

For those who just want to make a few pocket money, it may be generous at first, and over time, you will understand how vicious it is when it collects debts from you.

As long as your rules and plans are executed perfectly, all that remains is simple copying, repeating, simply repeating the areas you are familiar with! Chase up, kill down! Chasing up is not chasing high, I often emphasize that it is the trend of **, not **. Kill the fall, kill the downward space, not what is the stop loss!

It's not ideas that make money, it's waiting.

All a person needs to do is observe what the market is telling him and react to it. The answer lies in the market itself, and the challenge comes from making the right interpretation of the facts presented.

The market will give you timely signals when to enter the market. It is also certain that the market will signal you to exit the market in time – if you are patient. "Rome was not built in a day", and the really big trends don't end in a day or a week. It takes time to go through its own logical process.

How easy it is must be how difficult it is, and if you want to be fast, you can't reach it.

In the process of the development of anything, there must be the determination and influence of many successive conditions, the fast is harmful, and the slow is beneficial. So the slowest accumulation is the fastest way for you to make a profit, and believe that the power of compound interest is enormous. Compound interest, sometimes it is algebraic-level growth, sometimes geometric-level development, infinite energy, like a bean sprout top stone, which is shocking.

Be patient enough to see this great gain. The huge wealth obtained in exchange for the expansion of time and accumulation, due to the different starting points of thinking and reality, will make you feel that when the real great harvest comes, you can really feel that although it took some time to have a huge amount of wealth, it is indeed very fast and safe. Therefore, the fastest and greatest way to own wealth is to accumulate one safe profit after another, and there is no other way.

In long-air battles, sometimes there is a gap in strength between the two sides, but the disparity in strength does not always lead to one side having the final say, but often although one side has the advantage in the situation, the other side still has the strength to counterattack. Reflected on the disk, that is, there is resistance to the stock price, there is support below, and the long and short sides launch a tug-of-war, so as to form a kind of ** on the chart, in addition to the body, there is a head (upper shadow line) and a foot (lower shadow line), which is the shadow type**. A long shadow pattern is a pattern in which the length of the upper (or lower) shadow far exceeds the length of the body.

The long lower shadow is applied to the rule

In the diagram, the thin line extending downwards from the body is called the lower shadow. In a white candlestick, it is the difference between the opening price and the lowest price of the day; In the black candlestick, it is the difference between the ** price of the day and the lowest price. Generally speaking, the reason for the formation of the lower shadow is due to the fact that the bullish forces are greater than the bearish forces. **After the opening, the stock price fell for a while due to the pressure of the bears, but due to the strong buying, the stock price rebounded and closed above the low, resulting in a lower shadow. Patterns with lower shadows can be divided into white candlesticks with lower shadows, black candlesticks with lower shadows, and dojis. In order to judge the forces of the long and short sides more accurately, it is necessary to make judgments based on different patterns.

In the case of the same size of the entity, the longer the lower shadow, the stronger the support of the lower level; The shorter the upper shadow, the less resistance there is to the upper gear. Most of the long lower shadows show the characteristics of a phased bottom. This is shown in Figure 1-1.

There are several rules for applying long lower shadows:

1) The long lower shadow appears at the high of an uptrend, and if the volume is amplified, it means that the selling pressure is heavier, and the bears are enthusiastic, but the bulls are exhausted.

2) The long lower shadow appears at the low level of the downtrend, if the volume is enlarged, it means that there are panic chips thrown, but the low level is enthusiastic, and a large number of long ** orders are involved.

3) If it is a white candle with a long lower shadow, it indicates that the attack of the bulls in the long-short battle is calm and powerful, and the stock price falls first and then rises, and there is potential for further.

The long upper shadow is applied to the rule

In the diagram, the thin line extending upwards from the entity is called the upper shadow. In the white candlestick, it is the difference between the most ** and ** price of the day; In the black candle, it is the difference between the most ** of the day and the opening price. As a result, the ** pattern with an upper shadow can be divided into a white candle with an upper shadow, a black candle with an upper shadow, and a doji. For different forms, the judgment of long-short forces is different.

Generally speaking, the reason for the formation of the upper shadow is due to the fact that the bears are stronger than the bulls. **After the opening, the bulls were unable to attack and were suppressed by the bears, and the stock price fell from the high, forming an upper shadow. In the case of the same size of the entity, the longer the upper shadow, the greater the pressure on the stock price in the upper range; The shorter the lower shadow, the weaker the support for the lower level. Most of the long upper shadows show the characteristics of a phased peak. As shown in Figure 1-2.

There are several rules for the application of long upper shadows:

1) The long upper shadow appears at the high of the uptrend, if the volume is amplified, it means that the bulls are chasing the high positively, but the high selling pressure is heavy, and the stock price is difficult to climb upward, ** It is likely to turn around or reverse.

2) The long upper shadow appears at the low level of the downtrend, if the volume is enlarged, it means that the bulls are involved, but they cannot effectively curb the selling pressure, and the bulls and bears have gradually turned to parity.

3) If the bullish candlestick has a long upper shadow, it shows that the upper selling pressure is heavy when the bulls attack. This kind of graphic is often used in the trial action of the main force, indicating that there are more floating chips at this time, and the rally is not strong. The long upper shadow often appears at the top of the phase.

Use the upper shadow to predict the trend

Test disc type upper shadow

The upper shadow generally indicates the presence of pressure, which is a signal of a phase peak. However, the main force will test the upper selling pressure before pulling up**. This kind of stone-throwing asking for directions to form an upper shadow is not too worrying.

There are two important points to distinguish whether it is the upper shadow of the test disc type.

1. The trading volume is not enlarged.

2. The stock price is always in a narrow range.

At this time, it is necessary to pay attention to the situation, if the main force is driven by the market, the main force will often follow the trend, will not consume funds against the market, and wait for the market to stabilize and then quickly pull up the long white line, so that the stock price will return to the trend.

If the ** is relatively mild, and the above two conditions are true, the long upper shadow can be safely held to rise.

As shown in the figure below

Tip: When ***, choose the one with a long upper shadow and a small decline, and the market will perform better.

Upper shadow of the seismic position

The upper shadow of the shock position type often occurs on the ** that has just been activated. The reason for the formation is either the sale of the hedging order in the early stage, or the sale of the ** profit-taker. The key to identifying whether it is a shock-type upper shadow is to look at the trading volume, if the trading volume is enlarged, it means that the upper shadow line is formed to undertake the order is stronger, and the market outlook is still dominated by holding stocks to rise.

See the top upper shadow

* After a while, the stock price is already relatively high, and the upper shadow at this time is a reminder that we have peaked. If the volume can shrink at this time, it means that the willingness of funds to chase up is not strong, at least the main force is unwilling to rise again. At this time, you should be vigilant and ready to leave.

The following figure reflects the upper shadow of the shaking position wash and the upper shadow of the peak well. The stock price on the left side of the chart is steadily rising, accompanied by the upper shadow, but the volume can be enlarged simultaneously, indicating that the undertaking is stronger. In the blue circle in the chart, the stock price has risen considerably. The upper shadow line continues to appear at a relatively high level, and the volume can shrink at this time, ** is the last opportunity to leave the market.

There are several types of special upper shadows to be aware of:

1) The upper shadow line of the test plate type. When some of the main forces pull up, the operation is cautious, and when they want to create a new high or the stock price moves to the previous high, they must test the market, that is, use the upper shadow line to test the upper selling pressure, also known as "exploring the road".

If you think that there is a lot of selling pressure on the upper shadow, it may prove to be a wrong decision afterwards. The upper shadow is long, but the trading volume is not enlarged, and the stock price always closes with the upper shadow in an area, which is the main test order. If the stock rises after the test market, you can rest assured that the shares, if transferred to **, it proves that the dealer tries to sell pressure above, at this time you can sell shares with the banker, generally in a lower position can be picked up. When a ** pulls out a long upper shadow after a big rise, it is best to exit immediately.

2) Upper shadow of the seismic position. This kind of upper shadow often happens to some ** that has just started. In order to wash the market and shake the position, some main forces often use the upper shadow line to scare out those who do not hold positions firmly and scare off those who want to follow the banker. Investors should look at the **portfolio** when operating, and do not pay too much attention to the ** of a single day.

It should be pointed out that large capital institutions can regulate the rise and fall of the first class, but in the market value of the increasing market, there is nothing that can regulate the first institution, so if the first high or low level of the stage appears a long upper shadow or lower shadow line, its guiding significance is stronger.

In a strong market, some institutions are not very financially strong, and they often create one or several single-day long lower shadows in their hype. The method is that a ** suddenly appears in the intraday an inexplicable, extremely low price and large number of transactions, and then returns to calm, and a long lower shadow is generated. This is one of the main forces to send a signal of "strong support" to the majority of investors. Generally, because the strength of the dealer is not very strong, the performance will not be too outstanding.

First *** signal: hammer line

1. The longer the lower shadow of the hammer, the stronger its bullish signal.

2. The solid part of the hammer can be either a positive or a negative line. In practice, the bullish signal strength of the Yang Hammer exceeds that of the Yang Hammer.

3. If the volume is amplified at the same time as the hammer line is formed, the bullish signal of the pattern will be stronger.

4. After investors follow this pattern, the lowest point of the lower shadow of the hammer can be set to *** Once the stock falls below the price in the future, it indicates that the bullish pattern of the hammer line is invalid, and the investor should stop the loss and sell.

5. When there is a red range in the fishing season and a signal also appears, the investment can be boldly held**.

Second *** signal: inverted hammer line

The body is short, the upper shadow is more than twice the length of the body, and there is almost no lower shadow. This pattern appears after a period of *** and is a bullish signal, the buy point - when the stock price breaks through the highest point of the shadow of the inverted hammer**.

Third*** signal: bullish engulfing

Features:After a period of time in the stock price, a long white candlestick appeared, and this white candlestick body completely engulfed the body of the previous **. After the appearance of a long white candlestick in the pattern**.

Note:

1. In a bullish engulfing pattern, the previous ** can be a small white candle, a small black candle or a doji. This does not affect the strength of the bullish signal of the pattern.

2. The longer the physical length of the second white candle and the greater the trading volume, the stronger the bullish momentum. In this case, the bullish pattern will be stronger.

3. When the fishing season is in a strong range, then it is bold.

The long black candle was sold at a high level

The big black candle was sold at a high level, and a long black candle was closed, although the trading volume was not large, but the turnover rate of the day reached 1667%。At this time, investors should sell decisively. The next day, the stock price also opened sharply lower, and the market outlook was also all the way.

Core: Sell the long black line, in the process of the stock price, suddenly close the long black line and sell decisively.

5-day ** Selling Tips

Stay away from the 5-day ** above**, and the 5-day deviation rate reaches more than 10%, indicating that the buyer's strength is exhausted and there is a **demand.

Core: There has been a wave of gains above, the 5-day deviation rate is above 10%, and the stock price is in demand, and investors should seize the opportunity to sell.

5-minute MACD crosses below the zero line, sell**

Key points of operation: The stock price is reversed at a high level, gradually, and the MACD also follows from top to bottom through the zero axis, which indicates that the stock price trend has changed from rising to falling, and it is likely to enter a downward channel, and investors should issue it in time to avoid risks.

Core: The greater the increase in the stock price in the early stage, the greater the possibility that the stock price may reverse at any time, and the 5-minute MACD crosses the zero axis, which is an important signal for the day's ** weakening.

The above is the essence of my many years of ** trading experience, all to share with you, I hope it will be helpful to everyone, the vast universe, all living beings together. I am Lao Liu's high-quality author list, sharing what I know and learn, taking all living beings as mirrors and all phases as teachers, improving my own realm and encouraging each other with all of you!

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