The legendary woman who was reborn from the ashes
Chapter 148: Gaps 2 Yins and then rises to the daily limit, multiple volume is the key
In the complex changes of the stock market, investors often need to rely on various technical patterns and signals to judge the trend of individual stocks and the intentions of the main players. Among them, a pattern called "gap two negatives and then reverse limit up" is particularly worthy of investors' attention.
After a stock enters the rising channel, the main force often uses bad news to open lower and close with a negative line for two consecutive trading days in order to shake out the market. The next day, the stock price suddenly opens higher and closes with a large positive line with a daily limit. This is a reversal and daily limit after a gap-up two negative lines, thus completing a strong reversal.
The emergence of this pattern often means that the main force is preparing to launch a new round of offensive after the wash-out is completed.
Through continuous gap-up opening and closing of negative lines, the main force effectively cleaned up the floating chips in the market, reduced the holding cost, and also created conditions for subsequent pull-ups.
It is not only a confirmation of the previous wash-out effect, but also a strong indication of the future trend of stock prices.
This pattern often appears when the main force has finished washing the market and is preparing to launch a new round of offensive.
When investors choose to operate the target, they must be clear that the stock is already in an upward channel. This can be judged by observing whether the short-term and medium-term moving averages maintain a good long arrangement.
Even if a negative line is closed in these two trading days, it should not affect the overall pattern of the bullish arrangement of the moving average. This is an important basis for ensuring that the overall trend of individual stocks is upward.
The trends of these two negative lines need special attention. They should fluctuate closely around the 5-day moving average, while the 10-day moving average continues to move upward.
This trend shows that although the stock price has corrected in the short term, the main force has not given up its control of the stock, but is using the correction to shake out the market and clean up the market.
The double volume phenomenon is a key indicator to determine whether the gap-up double-negative reversal limit is established. The so-called double volume means that the trading volume on the day of the limit is doubled compared with the trading volume of the previous two negative lines.
This significant increase in trading volume usually means that a large amount of funds were concentrated on buying on the day of the daily limit, which is an important driving force for the stock price to rise. At the same time, if there is a doubling of volume before these two negative lines, it will increase the credibility of this pattern.
It is best to open higher on the day of the daily limit. This can not only further confirm that the negative lines of the previous two days were intentional warehouse shaking by the main force, but also show that the market sentiment has changed from pessimism to optimism, and investors are full of confidence in the future trend of individual stocks.
In terms of operation, investors can actively place orders to buy when the volume is doubled. Especially when the stock price eats up the previous two negative lines or is about to reach the daily limit, it is an excellent time to buy.
In order to prevent false breakthroughs, investors can also adopt a strategy of buying in batches, that is, buying a portion when the volume is large, and then adding positions when the stock price breaks through the upper track (pressure level) of the consolidation and is about to reach the daily limit.
The appearance of the gap-up double-yin reversal limit-up pattern not only provides investors with a clear buying signal, but also indicates that individual stocks may have a large room for growth in the future.
Investors still need to be cautious in the operation process and make comprehensive judgments based on the fundamentals, technical aspects and market environment of individual stocks. At the same time, they should also set stop-profit and stop-loss points to control risks.
At the end of the consolidation, once an effective breakthrough is achieved, it is easy to see a daily limit trend. This form of consolidation and breakthrough of the daily limit provides investors with a good buying opportunity.
When observing such stocks with consolidation trends, investors should focus on changes in trading volume, because the increase in trading volume means that a large amount of funds are being secretly deployed, which is an important signal that the stock price is about to break through.
In terms of operation, investors can adopt the strategy of buying in batches, that is, buying a part of the chips first when the trading volume is enlarged, and observing the subsequent trend of the stock price.
If the stock price can successfully break through the consolidation pattern and continue to rise, you can add more positions when the stock price is about to reach the daily limit. This can not only ensure that you keep up with the rhythm when the stock price starts, but also gradually reduce the cost during the stock price rise.
The reverse limit after the gap-up two negatives is a strong signal after the main force has washed the market. Investors often need to keenly capture various technical patterns to judge the future trend of individual stocks.
Among them, "two gaps and then reversal to the daily limit" is a pattern worthy of attention. It often appears after individual stocks enter the rising channel, and it is a strategy adopted by the main force to shake out the market and clean up the market.
However, just when the market was generally bearish and investors' confidence was shaken, the main force suddenly launched an offensive. On the third trading day, the stock price suddenly jumped high and closed with a large positive line that reached the daily limit.
This big positive line not only recovered the losses of the previous two trading days, but also set a new high. This is the so-called "gap two negatives and then reverse limit up" pattern.
From the perspective of the main players, the formation principle of this pattern is that they successfully cleaned out the unsteady retail investors through the suppression and cleaning of the market in the first two trading days, while also increasing the overall cost of the market.
When the market is generally bearish and investor confidence is shaken, the main force will take advantage of this panic to reverse the operation and strongly push up the stock price by way of the daily limit. This operation is not only a confirmation of the effect of the previous wash, but also a strong indication of the future trend of the stock price.
This pattern is not always successful. Its success depends on many factors, such as the strength of the main force, the overall market environment, the fundamentals of individual stocks, etc. Therefore, we need to be cautious when operating and make a comprehensive judgment based on other technical indicators and fundamental information.
After confirming that the pattern is established, investors can consider intervening appropriately when the daily limit is opened. However, it should be noted that since this pattern usually appears in the upward trend of individual stocks, the timing of intervention and position control are very important.
If you intervene too early or your position is too heavy, you may face greater risks; if you intervene too late or your position is too light, you may miss the subsequent rising market.
There is no absolute winner in the stock market. Although the "gap two negatives followed by a reversal and daily limit" pattern has increased the winning rate of investors' operations to a certain extent, it cannot guarantee success every time.
Mastering the characteristics and operation strategies of this pattern has important practical significance. However, it is also necessary to pay attention to the importance of risk control and fundamental analysis. In the future investment process, investors need to continue to learn and practice to improve their investment level and risk control ability.
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