How to look at the stock stop falling signal?

Stop signal is the summary of foreign stock market operation experience, these are also the traces of stock market trading, have a certain role in predicting the future trend. So what about stop signals?

1、 Stop signal characteristics
1. Heavyweights are no longer down.
2. When falling, the trading volume of the stock obviously shrank.
3. There are more rising stocks than falling ones.
4. The buying of the stock market is obviously larger than the selling.
2、 Signs of stop signs
1. From the perspective of the K line, there is a landmark positive line, that is, the stop falling positive line, which must have the coordination of trading volume.
2. From the moving average, the 5-day moving average should go flat and then turn head upward. The best is the 5-day moving average and the golden fork 10-day moving average.
3. From the index point of view, at least three days no longer record low, the index closed above the 5-day average.
4. From the important technical indicators, MACD green column began to shorten gradually.
5. From the perspective of funds, there are obvious signs of major funds entering the market.
6. From the plate hot spot, there is the emergence of a continuously strong leading plate.
3、 Influence factors of stop drop signal
The stock market is composed of people and capital. People, out of different wishes and different social status, form a number of groups. Reflected in the stock market are two kinds of contradictory combination of unity of opposites, game and interdependence. And deduce the ups and downs of the stock market.
Technical indicators are the embodiment of human wisdom and reason, while capital is the embodiment of human will and desire.
When one will triumphs over the other, greed, desire and fear overwhelm wisdom and reason. This overwhelming will victory is shown in the stock market, which is a strong unilateral (up or down) force. In this case, all technical indicators have to give way to the "potential" of the will, and then the technical indicators will temporarily fail. Only "potential" is the most real embodiment.
In this case, do not easily guess and blindly follow the technical point. Only when the "potential", which represents the will, achieves its goal, will the rise and fall of the stock market stabilize. There is no indicator of this trend. Can only look at the "potential", as the stock market experience, at this time, we need to use the "plate sense" to catch the trend on the plate. That is to say, only when the "potential" completely realizes the will, the signal will be truly clear.
Another factor, capital, which is reflected in the stock market, is trading volume. The large-scale decline shows that there must be a large part of the fund to see into, there is a large part of the fund to leave, in order to large-scale. Therefore, a new balance can emerge only when the entry and exit are finished. This balance is the most accurate signal, which is embodied in the extreme shrinkage of trading volume.
Therefore, the competition between the two forces has reached a balance, and the most true falling signal is when the trading volume is extremely shrinking! The market-oriented allocation of capital is the most basic function of the stock market, and also the basis for its birth and existence. Financing is the most normal process of stock market operation. Financing is not always the right thing to do. But since we want to raise funds, the stock market will not be over. Only at the most powerful moment, can it play its role more normally. Therefore, the market is far from over, we just need to pay what we should pay and get what we deserve when the "potential" is relatively balanced!

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