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 inevitable losses if they make money, and the proportion of losses is often relatively large. Perhaps some investors believe that making money in the stock market is nothing more than buying low and selling high, and then repeating the operation, you can continue to make profits. This seems to make sense and is true. However, this is not the case, many times often buy not the low point but sell at the low point; I didn't sell when I should have sold, and I didn't buy when I should have bought.
The reason for investment mistakes is that investors do not know how to grasp the buying and selling points. That is to say, 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 at all times 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, relaxed and achieve stable profits.
First, the upward gap combination
Pattern analysis: The so-called upward gap means that the opening price of the day is part higher than the previous day's high, and as of the close, the lowest price is still higher than the previous day's high. The two-day candlestick leaves a blank gap. This combination is called an upward gap, and the two candlesticks can be two white candlesticks, one yin and one yang, or even two black candlesticks. The bullish signals of two white candlesticks are the strongest. Its morphology is shown in Figure 1-1.
From the formation process of this pattern, we can see that the buyer power is obviously stronger than the seller power in the next day's operation. This pattern can appear in any position, and if this combination occurs in the early or midway of the stock price rise, it is very likely that the stock price will continue to rise in the future. If this combination occurs in the high area after the stock price rises, it is likely to be a trap created by the main force, making investors mistakenly believe that the stock price still has strong upward momentum, so as to enter the market to receive the main sell-off.
Case Study:
As shown in Figure 1-2, the special information K-line chart is that after a long-term decline, an upward gap combination is formed at the bottom, and then the stock price begins to reverse. In practice, if you encounter this combination at the bottom, you should pay enough attention to it, and if the gap does not cover in the next two or three days, you can actively buy.
As shown in Figure 1-3 of the Baiyun Airport K-line chart, after a period of steady rise, the stock price has an upward gap combination at the top high, and the trading volume releases a huge amount, and the second gap white line has a long upper shadow, which indicates that the stock price has encountered heavier selling pressure in the process of upward pulling. Then a black candlestick closed the next day, after which the stock price fell all the way. Investors should be especially cautious if they encounter such a combination at a high level.
Second, the downward gap combination
Pattern analysis: The pattern of the downward gap combination is shown in Figure 2-1, which means that the opening price of the stock price on the day is lower than the lowest price of the previous day, and as of the close, its highest price has not reached the lowest price of the previous day, and there is a blank trading area in the middle of the two-day K-line. Contrary to the upward gap, it is a bearish signal, and the downward gap pattern often appears in the high area of the long-term stock price rise or in the middle of the stock price decline. Similarly, two candlesticks with a gap down can also be one yin and one yang, or even two white candlesticks.
If the combination is in the high area of the long-term stock price rise, it indicates a clear decline in buying and a clear strengthening of the selling order, which indicates that the stock price is very likely to fall in the future.
If this combination occurs in the process of falling stock prices, it marks a panic selling pressure during the session, which indicates that the market will continue the decline and even accelerate the decline.
The downward gap combination generally appears on the way to the stock price fall, but sometimes also appears in the high area, when this combination appears on the way to the stock price fall, indicating that there is panic selling pressure in the session, indicating that the stock price will continue to fall, or even accelerate the decline. When this combination appears in the high area after the stock price rises, it indicates that there is a clear weakening of the buying order, while the selling order has turned stronger, and the market may go down.
Case Study:
The K-line chart of Baiyun Airport, as shown in Figure 2-2, is circling and oscillating at a high level, but it has never reached a new high. On the second run to the previous high, it encountered resistance to the downward again, fell directly below the 60-day line in the form of a gap, and then fell all the way. If investors encounter such a trend in a high area, they should make a decision immediately and not linger.
As shown in Figure 2-3 of the Fujian high-speed K-line chart, on the way down the stock price appeared this downward gap combination pattern, it can be seen that the momentum of the short side is increasing, indicating that the future market is still dominated by the falling market, as can also be seen from the figure, and then the stock price still continues to fall in the market.