The legendary woman who was reborn from the ashes

As an extreme expression of the stock price fluctuation range, the daily limit has extremely important practical value in capturing dark horse stocks and investing in the main rising trend. There are many ways to capture the daily limit, but the most important one is to conduct a comprehensive study of the market before the daily limit is activated. There will be the following market characteristics before the daily limit is activated.

K-line characteristics before the daily limit

The appearance of the daily limit is often accompanied by the preparation of a series of K-line combinations in the early stage. That is to say, the daily limit does not come out of nowhere, but is deeply buried in the previous K-line combinations.

By carefully observing the K-line combination before the daily limit, the probability of catching the daily limit can be greatly increased. So, what kind of K-line combination usually appears before the daily limit? Based on historical data, the K-line combinations that often appear before the daily limit include the following:

Hidden Dragon Out to Sea:

After the stock price fell sharply in the early stage, the main force absorbed chips at a low level for a long time. As the main chips continued to increase, the stock price began to rise continuously with small negative and small positive trends. When the stock price successfully stood above the 60-day moving average, it would show an accelerated upward trend.

At this time, the K-line trend will often show the form of continuous positive lines, implying that the stock will enter a rapid rising stage, and the future market often has a lot of room for growth, just like a dragon lurking under the water, about to take off, so it is called "a hidden dragon emerging from the sea."

Ants climbing a tree:

After a long period of decline in stock price with shrinking volume, the two main moving averages, which are slightly tilted downward to the right, are very close to each other or basically flat.

When the stock price steps on these two moving averages, it rises slowly with a series of small positive lines, easily sending the stock price to the 60-day moving average. We call these small positive lines that continue to rise "ants climbing trees". The appearance of "ants climbing trees" is a sign that the stock price has bottomed out and is beginning to strengthen.

Uprising:

After falling, the stock price has been consolidating in the bottom area for a long time, and the moving average system is in a sticky state or in a long or short arrangement with extremely small spacing.

Suddenly one day, the stock price soared from the third line. This was a sign that the market maker had started to push up the price. This huge positive line that soared from the third line was called "uprising."

This pattern is the dealer's mobilization order for the upward attack, the dealer's assembly call, and the charge to charge into battle.

Red flag half roll:

After a period of continuous rise, the stock price enters a stage of volume reduction and correction. During the correction process, the trading volume shrinks extremely. As the trading volume gradually decreases, the stock price gradually stabilizes and rises.

At this time, a group of K-line combinations with gradually lower highs and gradually higher lows appear, which is the "half-roll red flag" pattern. This pattern is a sign that the main force has finished washing the market and is pulling it up again, and it has extremely high practical value.

In addition to the K-line combination characteristics, there are also some obvious characteristics on the intraday market before the daily limit is activated. These characteristics can help us grasp the buying opportunity of the daily limit more accurately.

Good coordination between quantity and price:

In the intraday market before the daily limit was launched, we can see that the trading volume gradually increased as the stock price rose. This trend of rising volume and price shows that the main funds are actively buying, laying a solid foundation for the subsequent daily limit trend.

The trend is stable and strong:

The intraday market trend before the daily limit is activated is usually relatively stable and strong, and the stock price rarely fluctuates or falls during the rise. This stable trend shows that the main funds have a strong control over the stock price and can maintain a stable rise in the stock price.

Active participation of major funds:

In the intraday market before the daily limit is launched, we can observe signs that the main funds are actively buying. This can be judged by observing indicators such as intraday trading volume and capital flow. When the main funds start to buy heavily, it usually means that the daily limit is about to appear.

The best buying opportunity to catch the daily limit is an issue that investors need to focus on in actual combat. Before the daily limit appears, investors need to make a comprehensive judgment based on market characteristics, K-line combinations and other factors to determine the best buying point.

Buy on a breakout of a significant resistance level

When the stock price breaks through important resistance levels during the rising process, such as previous highs, areas of concentrated trading, etc., a daily limit trend will often appear.

At this time, investors can pay close attention to the market characteristics at the time of the breakthrough, such as whether the trading volume is enlarged and whether the intraday trend is stable, in order to judge the effectiveness of the breakthrough. Once the breakthrough is confirmed to be effective, investors can decisively buy and enjoy the benefits brought by the rapid rise in stock prices.

Buy when the intraday trend shows strong characteristics

In the intraday trading before the daily limit is activated, if the stock price shows characteristics of a strong rise, such as a steep rise in the intraday line and a continuous increase in trading volume, this is usually a signal that the main funds are actively buying.

Investors can pay close attention to the changes in the intraday trend. Once the stock price shows signs of accelerating growth, they can consider buying. It should be noted that when buying, a comprehensive judgment should be made in combination with other factors such as K-line combinations to ensure the safety of the purchase.

Buy when the pullback stabilizes

During the stock price rise, if there is a short-term correction trend, but the correction is not large and there are obvious signs of stabilization, it is often a good opportunity to buy. At this time, investors can pay attention to the changes in trading volume and intraday trend during the correction process.

If the trading volume gradually decreases and the intraday trend shows a stabilizing trend, you can consider buying when it stabilizes. It should be noted that when buying after a pullback, you should make a comprehensive judgment based on factors such as the market environment and the fundamentals of individual stocks to ensure the success rate of buying.

After catching the daily limit, how to sell reasonably is also an issue that investors need to pay attention to. The formulation of the selling strategy should be based on the trend of individual stocks, the market environment, and the risk tolerance of investors.

Determine the selling time based on the shape and position of the daily limit

Different daily limit patterns and positions often correspond to different selling opportunities. A wave of daily limit usually occurs in the stage of strong stock price increase. At this time, the selling opportunity should be chosen at the moment when the daily limit is opened or after the next day's high opening.

Multiple waves of daily limit increases may occur during the stock price's volatile upward trend. Investors can judge the timing of selling based on the magnitude and strength of each wave of increase.

Combine the overall market environment and individual stock fundamentals to make selling decisions

When selling stocks that have reached their daily limit, investors also need to pay attention to changes in the overall market environment and the fundamentals of individual stocks. If the overall market adjusts or the fundamentals of individual stocks change negatively, it may have an adverse impact on the stock price trend. At this time, investors should consider selling in time to avoid risks.

Set reasonable stop-profit and stop-loss points

In order to control risks and protect profits, investors should set reasonable stop-profit and stop-loss points when buying stocks with daily limit. The stop-profit point can be set according to the rise and speed of individual stocks, and the stop-loss point can be set according to personal risk tolerance and the support level of individual stocks.

When the stock price reaches the take-profit point or falls below the stop-loss point, investors should sell decisively to lock in profits or control losses.

Selling strategy for multi-wave daily limit

A certain stock showed a multi-wave limit-up trend during its rise. After buying, investors closely followed the magnitude and strength of each wave of rise. When they found that the rise was weakening or there were signs of stagflation, they decisively sold to lock in profits. Through a reasonable selling strategy, investors successfully avoided the risk of subsequent pullbacks.

As a special phenomenon in the stock market, the daily limit has extremely high practical value. By deeply studying the market characteristics, buying opportunities and selling strategies of the daily limit, investors can capture more daily limit opportunities in actual combat and maximize investment returns.

As the stock market continues to develop and improve, the form and characteristics of the daily limit may change. Therefore, investors need to continue to learn and update their knowledge to adapt to market changes and capture more daily limit opportunities.

Investors should also maintain a rational investment mentality and not blindly pursue daily limits while ignoring risk control in order to achieve a stable return on investment.

Daily limit practical skills and precautions

In the actual practice of catching the daily limit, in addition to mastering the basic market characteristics, buying opportunities and selling strategies mentioned above, there are also some practical skills and precautions that investors need to pay attention to.

Control risks: Although the daily limit has a higher profit potential, it is also accompanied by higher risks. When investors capture the daily limit, they should set a reasonable stop loss point to control potential risks. At the same time, avoid over-trading and blindly chasing the rise, and stay calm and rational.