Lightyear FX: Financial Analyst, Financial Media Person, Amateur Research Trading Technical Analysis. Stay on top of the latest cutting-edge technology information and share the most in-depth industry insights with you. The following content is from Just2Trade.
1. Use the Bollinger Bands indicator to select stocks
1. The Bollinger Bands are composed of the upper band, the middle rail, and the lower rail to form a strip channel, between the upper and middle rails is the strong area, and between the middle and lower rails is the weak area. The stock price runs between the upper and middle tracks most of the time, indicating that the stock price is running in a strong area, and the stock price is expected to continue to rise, and investors in this kind of stock can consider intervening.
2. When the price runs in the area between the middle and upper bands of the Bollinger Bands, as long as it does not fall below the middle band, it means that the market is in a bullish market and can buy on dips.
3. Investors use the Bollinger Bands indicator to select stocks, mainly to observe the size of the opening of the Bollinger Bands indicator, and pay more attention to those stocks whose openings are gradually getting smaller. Because the opening of the Bollinger Bands indicator gradually decreases, it means that the rise and fall of the stock price gradually decreases, and the forces of the long and short sides tend to be consistent, and the stock price will choose the direction to break through, and the smaller the opening, the greater the strength of the stock price breakthrough.
4. Investors use the Bollinger Bands indicator to select stocks, pay attention to the price between the middle and lower rails of the Bollinger Bands, as long as it does not break through the middle track, it means that it is a short market, the trading strategy is to sell on the upside, do not consider buying; when the market price runs along the upper track of the Bollinger Bands, it means that the market is a unilateral rising market, and the long single held should be held, as long as the price does not leave the upper rail area, it should be patiently held; when running along the lower track, it means that the market is currently a unilateral downward market, generally a wave of rapid decline market, you should hold the currency and wait and see, as long as the price does not leave the lower rail area, you can wait patiently。
5. After choosing a stock with a small opening of the Bollinger Bands indicator, don't rush to buy it first, because the Bollinger Bands indicator only tells investors that these stocks will break out at any time. If these stocks have the following conditions at the same time: a. the fundamentals of the listed company should be good, so that it can attract a large number of followers when the main force is pulling up; b. the stock price should stand on the 250-day, 120-day, 60-day, 30-day and 10-day moving averages on the K-line chart; c. To see where the current stock price is, it is best to choose stocks with relatively low stock prices, and be more careful with those stocks that are sideways at high levels, rising and falling.
6. Use the Bollinger Bands indicator to select stocks, and the closing and opening of the Bollinger Bands are very critical. Once the upper and lower bands of the Bollinger Bands are very close together, it often indicates that the operation of the stock price will change. The position of the opening and closing of the Bollinger Bands determines that investors will be faced with making major decisions to buy, hold, and sell.
7. Use the Bollinger Bands indicator to select stocks, and pay attention to observe the Bollinger Bands and the Bollinger Bands necking state. The price fluctuates near the middle track, and the upper and lower rails gradually shrink, which is the harbinger of the coming of the big market, and should wait and see the short position, waiting for the opportunity; the sudden expansion state after the channel shrinkage, which means the advent of a wave of explosive market, after which the market is likely to go unilateral, you can actively adjust the position, and follow the trend; when the Bollinger Bands shrink, before a wave of big market comes, there will often be a false breakthrough market, which is the trap of the main force, and should be vigilant, and can be resolved by adjusting the position.
8. The 5-minute Bollinger Bands indicator can be used to determine the buying time for ultra-short-term investors. When the 5-minute BOLL indicator suddenly shows the characteristics of opening expansion, and the stock price quickly breaks through the suppression of the upper band of BOLL, it means that the time for ultra-short-term buying is coming. At the same time, we should also pay attention to the opening expansion strength of the 5-minute BOLL, the greater the opening expansion strength, the stronger the main force pull, and the greater the short-term upward strength. If the opening expansion is not strong, it often implies that the rise is more limited, and it is also necessary to pay attention to whether the trading volume is rapidly enlarged when the opening expansion of BOLL occurs in 5 minutes, and the individual stocks with abundant volume can rise strongly.
9. The time period of the Bollinger Bands should be based on the weekly line, in the unilateral market, the position has a high profit, in order to prevent a large pullback, you can refer to the principle of the daily Bollinger Bands out.
2. Use the turnover rate and trading volume to select stocks
1. Use the turnover rate to pick stocks
1) It was an unpopular stock from the beginning
Generally speaking, the larger the turnover rate, the more incentive individual stocks will have. Therefore, stocks with a high turnover rate also have a high degree of stock price activity, and vice versa, they are unpopular stocks.
2) Unpopular stocks turn into hot stocks
If a stock that has been trading sideways for a long time and has been beaten in a "forgotten corner" suddenly increases its volume after a full turnover of hands, it means that the stock may have to perform.
2. Use the turnover rate to select stocks
1) In the first hour after listing, the turnover rate is more than 40%.
2) On the first trading day of listing, the turnover rate exceeds 60%, if the turnover rate on the first day exceeds 70%, it shows the urgency of the main force to open a position, and the stock should be included in the key focus list.
3. Look for dark horse stocks from the trading volume
1) Look for stocks with moderate volume
Generally speaking, the trading volume of a stock in the stock market is larger than that at the opening of the previous day, and the daily K-line chart is at the bottom of the sideways market.
2) Observe the volume moving average
It should be noted that if the trading volume fluctuates frequently around the moving average, and the trading volume exceeds the moving average more when the stock price rises, and the trading volume is more below the moving average when it falls, then this situation indicates that the stock contains the potential of a dark horse stock.
3) Comprehend the stock market and grasp the size of the placement
When there is a certain increase in volume, the market maker will clean the short-term floating chips and profit orders and allow investors who are optimistic about the stock to intervene, with the aim of increasing the average cost of holding shares in the market and reducing the resistance when rising again. Therefore, when the volume falls, the trading volume cannot be continuously amplified, and the volume will shrink and stabilize at the important support points, and the floating chips on the disk will become less and less.
4) Analyze the changes in the stock price
The vast majority of stocks have some large investors, and their short-term operations will also lead to fluctuations in trading volume, and investors need to be reminded to distinguish the difference between the fluctuations caused by this random trading and the fluctuations caused by the main intention to absorb. Random fluctuations do not have the problem of deliberately suppressing the stock price, the stock price is prone to jump up when the trading volume is enlarged, and the main force is bound to lower the buying price, so the rise of the stock price and trading volume has a certain continuity.
5) Make use of the volume ratio leaderboard in the stock software
When the market opens 15 minutes, you can first select dark horse stocks from the top 20 stocks in the volume ratio ranking. The purpose is to look at the stocks with a small volume ratio in the near future, eliminate the unpopular stocks and stocks in the descending channel, and select those stocks that have continued to rise in volume and shrink in recent days to track, and when the stock price stabilizes and re-expands, and the 5-day moving average warped and the 10-day moving average form a golden cross, you can decisively intervene.
6) Buy stocks that break through the previous highs
Generally speaking, if the stock price can break through the previous high, it also proves that the market maker will continue to pull up the stock price, so it can intervene.
7) Pay attention to the accumulation of volume
The accumulation of trading volume of dark horse stocks with a daily limit is also an important constraint, which plays an important role in judging the cost of opening a position for the main force. Except for the newly listed new stocks, most stocks have a dense trading area, and it takes a lot of energy for the stock price to break through this area, so this area has become an important area for building positions.
8) Don't chase stocks that are long white candlesticks for multiple days
Although these stocks are larger than the previous day every day, this is not far from the time when the dealer escapes for his life, and there must be a conspiracy in it every day, and the risk is too great, so it is not suitable to chase and buy.
4. Look for dark horse stocks from the shrinkage
1) Shrinkage and rise
Some stocks begin to fluctuate upward in an upward channel after a significant increase in volume at the bottom, and the trading volume gradually decreases as the stock price moves to a higher area. The shrinkage of these stocks reflects that the market makers of these stocks have gathered a large number of chips in their hands through the absorption and washing at the bottom, so the more the stock price goes up, the smaller the trading volume will be.
2) Shrinkage sideways
The characteristics of the shrinkage sideways are that after a round of rise, the stock began to move sideways at a high level, the K-line small yin and small yang are staggered, the trading volume has shrunk sharply compared with the bottom, the long-term moving average continues to move up and the stock price is gradually approaching, and there are few rumors about the stock in the market, and the stock reviews are less recommended, and no one pays attention to it.
3) Shrinkage callback
Generally speaking, most of the stocks will have a smashing action before the pull-up, because the market maker has already opened a position before, and the trading volume will shrink significantly than before the last shuffle before the pull-up. If an investor finds that a stock has suddenly closed a significant negative candlestick after a moderate increase and a slight rise at the bottom, this is usually the best time for the stock to intervene.