#Brilliant Pen Flower Creation Challenge##Record my 2023 from today##Autumn Life Punch Notes##Facts Hot Headlines #I rarely talk to you about some of the details of the big market, the reason is that I firmly believe in technology. Here is a brief share with you some of my feelings about the current market. Although the recent trend of the broader market is very bad, on the contrary, I feel that the broader market is going well, the reason is that through the recent time-sharing will detect that there are large funds quietly absorbed, their entry is often undetected, and when it is announced that they are coming, they are already there. Why are brokers, insurance, banks all performing today, and the index is not significantly rising. This is also a verification of the theory that we insist on learning, and the market has run to the late stage of the bottom-building process, that is, the conditions for turning from bears to bulls are late in the brewing process. Next, if the index enters a rebound cycle, cyclical industries will become the backbone. The above views are just a little personal feelings, welcome comments and advice. Continue with what we've learned today:
Analyze a Phase II case
The success of the second test indicates that the market supply has entered a dry phase and the bear market has been temporarily terminated. Automatic bounces and secondary testing form a price range in which we look at supply and demand to determine if smart money is buying stocks or if smart money is continuing to pay. At this time, we have to wait patiently for the price to leave the range. Let's look at a chart describing the high support:
Market background: As shown in Figure 2-7, from X to Y, this is a clear bear market. The process of the market falling from the top to the ice line is oversold (falling without any resistance). When oversold behavior occurs, the price generally rebounds. But small candles and lows appear in the rebound, indicating that there is no demand for support levels, so the price will continue to make new lows. The effectiveness of support can be judged by observing the size of buy orders flowing into the market at the support level. Y to Z bounce: The most obvious feature of this rally is the breakout of the downtrend line (not drawn here). The breakout of the trend line confirms that the bottom of Y is the initial support level. But this rally did not attract buyers to follow, or demand has not yet come up (because the volume of the rebound continues to decline). This situation is very dangerous to bounce off the bottom weakly, as it can cause the price to break through the bottom and continue to fall.
Candle No. 1 to Candle No. 2: From the perspective of continuous black candlesticks and increasing volume, Z to Candle 1 has a strong decline. But from the close of 4 candles between 1~2, it can be seen that the pressure of market selling is gradually disappearing, because the price is closing in a narrow range. Against the backdrop of a sell-off, while volume remained flat, the 4 consecutive weeks of volatility and almost no change in closing price told us that the inflow of sell orders into the market is becoming scarce.
Candle No. 3: Candle 3, although a clear black candle, is a bullish signal as low volumes tell us that supply is drying up. The latter candle, in particular, once again tells us that the supply has dried up, as volume and volatility range continue to decrease significantly. As we said earlier, at the support level, if the sell orders flowing into the market become scarce, this support level is effective, and generally in this context, demand will actively enter the market and try to raise the price. This retracement from Z stops above the original support, indicating that the CM minimum has begun to increase (they can no longer buy stocks at a price lower than this support level), which is a signal that the market is about to enter the upside. With this method of analysis, we can determine the reversal of the trend theoretically (supply and demand) and the behavior of the market itself, and buy at the end of the reversal process. The subsequent market action will confirm your buy (bottom-reading). In the following rally, the candle should be continuous, higher highs/higher lows/higher closing prices, accompanied by a steady increase in volume, which is characteristic of a true bull market.
Through actual cases, we can feel the details of the market more realistically. Gradually turning this behavior of observing changes in details into a habit will naturally improve the success rate of our trading and work together. The following stocks are exchanged and analyzed together, welcome to leave a comment.
[Important: The stocks below are stocks of alternative observation and are not of reference value, and you do so at your own risk.] The stock market is risky, and investment needs to be cautious. ]