The stock market is unpredictable, and no investor can guarantee that they will always be invincible in the stock market. There are many excellent investors in the market, and investment strategies and methods can be used as references, but it is important to understand that even the essence of other people's ideas will always be someone else's, and the most important thing is how to find the most suitable for yourself in the vast sea of theories and transform them into your own investment style, which requires a long time of practice and accumulation. Therefore, after investors enter the actual combat, they must pay attention to the accumulation and integration of knowledge, constantly adjust the investment strategy according to their own preferences, and will definitely form their own investment style over time.
In the stock market, the market maker's washing is to clean out the floating chips on the stock recently, and to clean out those investors who have an unstable mentality, will and belief in chips. Short-term traders often only focus on the fluctuation of a few percentage points of stock price rather than trend trading, so the market maker must first of all in the fluctuation range of the stock price from the original large fluctuations to a small range of fluctuation control, in the chart K-line is that the fluctuation range of the stock price is extremely narrow, and even to the limit, and in the wash pattern, those upper and lower shadows are too short to be shorter Doji line, small yang and small yin line is a typical performance.
Because the volatility is extremely narrow, short-term traders are unprofitable, so as to clear their positions, short-term traders pursue a "fast" word, and will never waste time to participate in the adjustment of the wash, so short-term traders will inevitably choose to withdraw to find another target stock. The participating short-term traders have a process of exiting one after another, and at the same time, because the market makers have not moved, the trading volume will show a downward trend. From the above summary:
(1) The fluctuation range of stock prices has changed from a large shock at the end of the rising band to a narrow range after the wash.
(2) The trading volume has shrunk from a huge volume to a ground volume.
The reason for the large amplitude at the end of the ascending band in point (1) is mainly due to the short-term spread made by the market maker at a stage high. In order to sell as much as possible at a high level, and the price difference is as large as possible, and combined with the psychology of market participants like to chase up, it creates a large amplitude at the end of the band.
The amount of day in the point (2) is caused by the concentrated selling of the bookmaker, because after a few days of pulling up, the full mobilization attracted the participation of market participants, and the popularity rose rapidly, and the bookmaker just took advantage of the good atmosphere at this time to make a short difference and earn a part of the profit and the amount of land according to different circulation, different market maker strength and the difference in the market environment and the internal quality of individual stocks, etc., so there is no unified quantity standard.
When the market maker sells part of the chips at the end of the upward swing to make a short spread, and then in the formation of the wash pattern, the market maker will temporarily withdraw from the operation, allowing other participants in the market to trade with the participants. At this time, because the stock price temporarily lacks the dominant force, it is inevitable that there will be drifting and inactive trading, and the dealer is secretly setting the upper and lower limits in accordance with the washing plan, and let other participants in the market toss between the upper and lower limits, so that retail investors and retail investors change hands, with the passage of time, the change of hands is becoming less and less active among retail investors, and retail investors who are unwilling to participate have withdrawn. When the stock price fluctuates to the upper limit, the dealer throws chips to suppress the short-term, and when the stock price fluctuates to the lower limit, the dealer buys the dip. And when the wash is in place, the stock price will start a wave of upward trend again.
"High open false black candle" - the "last strong wash" signal before the main force pulls up
High opening false yin pattern recognition: false yin refers to the stock price opened higher than the previous day's closing price, closed down, but the price is still above the previous day's closing price or only slightly down, the K-line chart formed a negative line, but the stock price is actually not lower, like a fake negative line, its time-sharing trend is shown in Figure 1-1.
Technical characteristics of high opening false yin washing:
(1) The market impact is large. The opening price opened sharply higher, or even the upper limit opened. Since the opening price is controlled by the market maker, the high opening of the black candle is extremely conspicuous on the daily K-line chart, and the impact on the market is greater.
(2) The call auction transaction is abnormal. The high opening false yin generally opens with a huge call auction volume, which is a huge volume of the market maker in order to create the illusion of a huge volume throughout the day, and release a huge volume during the call auction, so as to create a K-line pattern of a full-day volume closing yin. Similar to the previous "Giant Yin Wash", the lethality of the long Yin candlestick carrying a huge amount will be greater (see Figure 1-2).
(3) There is no shipping feature in the time-sharing trend. The high false black candle is on the tick chart, and there is no shipping feature. Specifically, after opening high, it instantly returned to the vicinity of the previous day's closing price, and the stock price went flat without fluctuation throughout the day. This is the biggest difference from the shipment pattern, and the negative line of the shipment should fluctuate throughout the day.
As shown in Figure 1-3, Tahoe Group (000732) time-sharing trend chart, after opening high, it falls, always above the closing price of the previous day, and the stock price is flat throughout the day, with no shipping characteristics.
There are the following types of high-opening false yin washing, which need to be considered separately in actual combat:
(1) Washing on the way sideways. After a certain increase in Zhuang stocks, they shrank sideways on the way, and closed out of the long holiday yin line on a certain day, and then closed out of the small yin line continuously, and the stock price was flat or slightly down. This is a sign of the market maker's wash before pulling up. Once the market outlook is engulfed by the false negative candlestick, investors can actively intervene, and there is a lot of room for growth in the market outlook.
(2) The end of the fall on the way. At the end of the banker's downward journey, the use of a high-opening false yin wash is often able to break down the last psychological defense line of retail investors and make retail investors kill out of panic. This pattern generally appears in the late stage of a period of continuous decline in the broader market, because the stock has continued to fall, retail investors are deeply trapped and refuse to sell, so the trading volume is extremely shrinking, and it is difficult for the stock price to fall. At this time, the long-term dealer or the short-term dealer who has just intervened in the stock makes a false black candle high in order to collect a part of the cheaper chips. At this point, you should make a decisive move, and there is a great possibility that the stock will rise sharply after that.
(3) Washing on the way up. On the way up, in order to clean the floating chips, the stock is often used to open the false yin washing mode. At this time, the speed of washing is relatively fast, and after a few days of shrinkage adjustment, individual stocks will regain their upward momentum and become a big bull stock. When investors encounter this pattern, they can choose to intervene after the stock price has swallowed a false black candlestick or an extreme drawdown.
After the wash, if the resistance of the stock price is not large, the dealer will officially start the pull-up trend, but if the stock price is still heavier when the stock price rises, and there are more sell-offs, the dealer may carry out another period of shuffling, and then officially start the pull-up market.
Specifically, market makers mainly use the technique of knocking to significantly increase the stock price. The market maker uses a large number of strokes to create the illusion that the stock is favored by the market, raise the expectations of shareholders, and reduce the selling pressure of the stock when it consolidates at a high level in the future. During this period, retail investors often have the feeling that they can't buy and need to overquote many prices to make a deal. Judging from the handicap, small buy orders are often not easy to fill, and each volume is obviously rhythmically amplified. It is easy for a strong stock price to rise, and buying orders are far more powerful than selling orders, and the number of entrusted purchases is large, and it is constantly growing, so there will be a very beautiful market with both price and volume. If the dealer belongs to the aggressive style, it will open sharply every day, and the end of the market will rise sharply to cause a rush situation, which is a strong signal that the stock is in the rising stage.
Since the rally of the market maker is a trend of rising stock prices, the moving average system shows a typical bullish arrangement. The 5-day and 10-day moving averages rise at steep angles, generally greater than 45 degrees. In the process of pulling up, the dealer usually pulls the medium and long white candles in a row, and the number of white candles is more than the number of negative candles, and the rise of the bullish candle is greater than the decline of the negative candle. The dealer spends a lot of money on his chips, fabricating the direction of the movement of hot money in the market to attract the attention of short-term customers. The main transaction comes from the convection chip swap of short-term customers to short-term customers.
In addition, in the process of pulling up the stock price, the market maker will continue to use the reverse method to quickly pull up the stock price, creating a short-term quick money-making effect for the market, so as to attract more short-term investors to participate in the operation, so that some short-term investors and another part of the short-term investors exchange chips and funds. In this process, the main task of the dealer is to use his own funds and chips to convection, so that the chips continue to appreciate in the process of rising stock prices.
At this stage, the frequent buying and selling of short-term investors can save the consumption of market makers' funds and reduce the selling pressure of profit-taking orders when the stock price rises. In the process of pulling up the stock price, it is a technique often used by market makers to make the stock price rise sharply or even to seal the daily limit. Some market makers will pull up in one go, which will quickly pull the stock price up the area away from the cost of opening a position.
Note: Pull up and test disk can not be confused, the test disk trading volume suddenly becomes larger, the time is shorter, there is often a single day on the disk of huge behavior; pull up when the volume is regularly amplified, maintain a long time, there is a continuous volume on the disk.
Finally, for successful investors, talent and diligence determine the return on investment! Talent is the ability to guarantee your understanding in the market. Diligence is through a lot of study and practice, to find the law of the stock market. Integrate these laws into systematic knowledge and integrate them into your own trading system.
Some people have talent, but they don't want to work hard. As you can see, every person who succeeds in stock trading is an extremely hardworking and diligent person. In the beginning, I didn't sleep before 2:00 every day. No one can succeed casually, so talent and diligence are two necessary factors for success in stock trading. As an accredited investor, there are several things you must do every day:
1. Market review. As a qualified investor, what happened in the market can be known after the fact, but it is not allowed not to know. The intraday may be full of emotional factors, but after the market, you can do more calm and objective analysis to understand the changes in the market. At the same time, for the stocks you hold, as well as the stocks you pay special attention to, what happened on this day, and whether there are any obvious changes, be sure to take a look, so as not to miss important information. The market changes every day, and investors need to be aware and keep up with the changes in the market as a whole.
2. Hot spot research. In addition to the review, it is necessary to be particularly sensitive to industry information. In particular, hot spots, or hot plates, should be interpreted in depth. Hot spots are often places where funds gather, and why do these funds chase hot spots? The money-making effect is one thing, but what is the deep-seated reason behind it. Because there are some hot spots, which will become the general trend in the future and lead the direction of the entire market.
3. Experience summary. It's best to write notes. Experiences can be personal or learned from communicating with others. What I personally experienced was mainly trading, buying and selling, summarizing what I bought right, what I bought wrong, what I sold right, and what I sold wrong. The more complete the analysis record of the trading mentality and the market situation at that time, the greater the help. My own trading experience is actually very helpful for future transactions, especially some wrong experiences, the pits that have been stepped on, and those that can be avoided in the future will be avoided.
Of course, we can also learn some of the experiences of others by communicating with the masters. Those successful investors must have a very valuable experience worth learning, but they need to be reasonably digested and taken from the essence. At the same time, we should also keep in mind that in trading, we are pursuing a result of long-term stable profits and new high equity, rather than pursuing short-term comfort and losing our ultimate value goal. In fact, there is still a long way to go for everyone in the transaction.