laitimes

Reflecting on its effect at the beginning of the yin and yang realm (reverse thinking skillful operation)

author:Yongxing Finance

This technique is based on the actual combat technique of reversing the "bullish" when the short, medium and long-term moving averages have just formed a bearish cross arrangement. (The moving averages used in the techniques in this section are the same as those used in the techniques in Chapter 4, Section 2)

  1. Composition process and significance:

  The trend of the stock price swing has changed from a strong rise to a weak decline, and the short, medium and long-term moving averages have also gradually turned downward from the original strong bullish arrangement to form a weak position of the bearish arrangement. However, due to the fact that the short, medium and long-term moving averages are arranged before they are turned into bearish arrangements, the characteristics of the bullish arrangement of the moving averages clearly show a divergent state that is far away from each other. Therefore, when the stock price fell and the band moving average was just transformed from a clear bullish divergent arrangement to constitute a negative trend of the bearish arrangement, the running trend of the stock price immediately turned around and reversed the upward trend.

  When studying the resonance rhythm relationship between the price and the moving average, the author found that if the sharp decline in the swing of the stock price is presented in the bullish pattern of the moving average, it means that the relationship between the stock price and the moving average is in the chaotic non-consistent rhythm resonance stage. The intersection between the stock price and the moving average must be re-corrected in the chaotic rhythmic relationship between the two, so as to reach the resonance direction of the future convergence of the two. However, if the trend of stock prices is to be excessively converted from the original balance to another balance, in the early stage of the transition of the trend conversion, the operating relationship between the stock price and the moving average will often have a swing rhythm that reverses each other. The author found that this reverse swing node often occurs in the initial period when the stock price turns from rising to falling and leading the moving average band in the bullish pattern to the initial period of reaching the bearish arrangement. Therefore, in actual combat, the author will not only not "have a fear" of such a bearish arrangement, but will be bullish in reverse.

  2. Important distinctions in details:

  First, this technical method is most effective when the stock price trend moving average is "initially transitioned to a bearish arrangement" by the medium- and long-term bullish arrangement.

  Second, before the moving average arrangement state turns to a bear, the alignment state of its bulls must be divergent away from each other. When the bearish crossover is about to be formed or is clear, the stock price has clearly moved away from the "bearish cross" of the moving average, and the downward trend shows the characteristics of fast rate, large decline and steep downward slope.

  Third, if the downward trend of the stock price is in a downward trend of repeated oscillations before the moving average constitutes a bearish arrangement, if the operating relationship between the moving averages is reflected in the characteristics of "close to each other", or if the stock price has produced a significant rebound before the "bearish crossing" of the moving average, it is absolutely not possible to judge such stocks in the "reverse bullish" way of thinking.

The moving average arrangement "initially overdosed yang boundary" is negatively bearish

  This technique is based on the practical technique of reversing the "bearish" when the short, medium and long-term moving averages initially constitute a bullish cross arrangement. (The moving averages used in the techniques in this section are the same as those used in the techniques in Chapter 4, Section 2)

  The swing trend of the stock price changes from a downward trend to an upward trend, and the short, medium and long-term moving averages are also arranged from the weak bears at the beginning, and then gradually turn upwards to form a strong feature of the bullish arrangement.

  However, due to the fact that the short, medium and long-term moving averages are in a divergent state that is far away from each other before the rotation forms a bullish arrangement, the characteristics of the "bearish arrangement" of the moving averages clearly show a divergent state that is far away from each other. Therefore, when the stock price rises from a reversal and pulls the moving average from a weakening empty hair loose arrangement to a bullish arrangement in the early stage, it is often a sensitive stage when the strong recovery of the stock price is about to end.

  In studying the resonance rhythm relationship between the stock price and the moving average, the author found that when the sharp rise in the stock price band is presented in the bearish pattern of the moving average, it means that the resonance relationship between the stock price and the moving average is in the stage of non-harmonious symmetry of mutual conversion. The fusion point between the stock price and the moving average must be re-corrected in this rhythmic relationship of mutual transformation, so as to form a consistent and convergent direction of the two again. However, if the trend of stock price trend is to transition from the original trend to another trend, then, in the early stage of trend transition, the operating relationship between the stock price trend and the moving average will inevitably have a reciprocal swing rhythm.

  The author found that this "reverse swing rhythm" often occurs during the initial period when the stock price falls and turns upward and pulls the moving average in bearish mode to reach a bullish state. Therefore, in actual combat, the author will not only not be happy with this kind of bullish arrangement behavior, but will be negatively bearish.

  First, this technical method is most effective when the stock price trend moving average is over-converted from a medium- to long-term bearish arrangement to a bullish arrangement.

  Second, before the moving average arrangement state becomes bullish, the arrangement state of its moving average bears must be in a divergent shape far from each other downwards. When the bull crossover is about to be formed or is clear, the stock price has clearly moved away from the "long cross" of the moving average, and the upward trend is obviously characterized by fast rate, large increase and steep slope.

  Third, if the upward trend of the stock price is in an upward trend of repeated oscillations before the moving average constitutes a bullish arrangement, the state of the moving average is reflected in the characteristics of close proximity to each other, or the stock price has produced a significant retracement adjustment before the "bull crossover" of the moving average, such stocks cannot be judged by reverse analysis.

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