How to distinguish the band Market?

Band operation is an investment method in which investors sell stocks at high prices and buy stocks at low prices. Band operation is an effective operation method for the current domestic stock market with band characteristics. Although band operation is not the most profitable way, it is always a way with high success rate. This flexible operation mode can help investors avoid market risks effectively, preserve capital strength and cultivate market sense. When the bottom of the band appears, if investors intervene in time, they will get a certain return. So how to distinguish the band Market?

1. Characteristics of the bottom of the band
(1) Judging from the trading volume, when a round of falling daily trading volume continuously shrinks to the ground volume, the market presents a short-term sell-off situation, and the short-term indicators of daily K-line are all oversold, which is an important feature of the bottom of the band being constructed. When the trading volume starts to increase slowly, and the index starts to move upward from the lowest range, it means that the Bulls begin to slowly overcome The formation of the bottom of the band is confirmed.
(2) Blue chip stocks and high price stocks made up for losses. This shows that even medium - and long-term investors are also frightened by the fierce decline and only want to be safe. As other stocks have already fallen miserably, only blue chip stocks and high price stocks still have the opportunity to recover funds, which is usually the last stage of decline.
(3) From the analysis of the moving average system, the 5-day and 10-day moving average diverged rapidly and then slowed down and flattened. The market showed signs of bottoming out and stabilizing. For example, the 5-day moving average tilted and crossed the 10-day moving average to form a golden cross, which means the end of band adjustment and the market is expected to come out of a wave of counter attack.
(4) The technical indicators are seriously oversold. If the KDJ index and RSI index are below 20, or even inactive, the ADR index (the sum of the number of rising companies in 10 days divided by the sum of falling companies in 10 days) reaches 0.8-0.3.
(5) Judging from the plate aspect, some varieties began to refuse the decline of the market and started an independent upward trend, which means that some funds with high sensitivity in the market began to actively layout because they felt the coming of the bottom in advance. Every time the bottom of the box oscillation band came, some plate varieties began to be strong and long, which stimulated the market's desire to do more, and gradually took a point belt Face, attract more and more funds to enter the market, at this time, the infection of short trading by bulls began to turn from idle to wait-and-see, and then from wait-and-see to do long, the market upward trend re formed.
(6) The parties concerned began to blow the wind of profit. After the policy market returns, the band bottom of Shanghai and Shenzhen stock markets must also depend on policies. For example, the reduction of state-owned shares with less than 1 billion shares in three years should not exceed 5%, and the reduction of state-owned shares with more than 1 billion shares should not exceed 3% in three years. This shows that SASAC is extremely optimistic about the future market and is unwilling to let state-owned shares fall on the floor of more than 3000 points. Investors must continue to pay attention to the follow-up positive policy trend.
(7) The number of accounts opened dropped sharply. This shows that the market has a huge drop, the effect of money loss is obvious, and new shareholders dare not enter the market.

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