The legendary woman who was reborn from the ashes
Chapter 156 The Logic of the Formation of Over-the-Top Daily Price Limit
In the stock market, the daily limit is a unique and eye-catching phenomenon. It symbolizes that after a long period of consolidation, the stock breaks through the previous pressure level with a strong attitude, indicating that a wave of main rising market may begin in the future.
1. Definition of Over-Limit Price
As the name suggests, the over-the-top limit refers to a special pattern formed when the stock price breaks through the previous high point at the limit. This pattern usually appears when the stock has been consolidating for a period of time, the chips are relatively concentrated, and the main force has good control over the market. The appearance of the over-the-top limit indicates that the main funds have completed sufficient accumulation and washing, and are ready to strongly push up the stock price.
2. Conditions for the formation of a daily limit
1. Long-term consolidation: Individual stocks show a state of sideways consolidation for a period of time, the moving averages show a sticky trend, and the chips are relatively concentrated. This stage is the process of main funds absorbing and washing the market. Through long-term fluctuations, most retail investors lose patience and leave the market one after another.
2. Chip peak: When chips are relatively concentrated, individual stocks show a chip peak. This means that the main funds have completed sufficient chip absorption, the chips are highly concentrated, and the control is good. At this time, the main funds have the ability to push up the stock price.
3. Daily limit breakthrough: Based on the peak of chips, individual stocks break through the previous high point in the form of daily limit. This breakthrough fully demonstrates the determination and strength of the main funds after breaking through the consolidation range, and also announces the beginning of a new round of rising market.
3. The logic of the formation of the over-the-top limit
1. Main force absorption and wash-out: During the long-term consolidation of individual stocks, the main force gradually absorbs the chips in the hands of retail investors through repeated shocks, suppression and pull-ups. At the same time, through the wash-out method, the retail investors with weak will are cleaned out to prepare for the subsequent pull-ups.
3. High concentration of chips: In the process of main funds absorbing and washing the market, the chips are gradually concentrated in the hands of the main force. When the chips peak, it means that the main force has mastered enough chips, has good control over the market, and has the ability to push up the stock price.
3. Daily limit breakthrough signal: When a stock breaks through the previous high point by way of daily limit, this signal fully demonstrates the determination and strength of the main funds after breaking through the consolidation range. At this time, the main funds are ready to push up the stock price, and there is a high probability that a wave of main rising market will begin in the future.
IV. Operational Strategies and Precautions
1. Time to intervene: On the day after the daily limit is broken, if the stock price opens flat or within 3% higher, investors can intervene directly. In addition, if the stock price falls back to the top peak without breaking it, it is also a good opportunity to intervene.
2. Risk control: Although the over-limit pattern indicates that there may be a wave of major upward trends in the future, investors still need to pay attention to risk control. When intervening, a reasonable stop loss level should be set. Once the stock price falls below the stop loss level, the investor should stop the loss in time.
3. Combine with other indicators: During the operation, investors can also combine other technical indicators and fundamental analysis to comprehensively judge the trend of individual stocks. For example, you can pay attention to indicators such as the trading volume, turnover rate, price-earnings ratio of individual stocks, as well as factors such as the company's performance and industry status.
Over-the-top daily limit is a unique and eye-catching phenomenon, which indicates that after a long period of consolidation, individual stocks have broken through the previous pressure level in a strong manner, indicating that a wave of major upward trend may begin in the future market.
During the operation process, investors should have a deep understanding of its formation logic and operation strategy, and conduct comprehensive analysis in combination with other indicators to make more informed investment decisions.
The trends of over-the-top limit and hitting the top limit are similar, but the subtle differences are enough to affect investors' decisions.
As the name suggests, an over-the-top daily limit means that the stock price not only breaks through the previous high on the day of the daily limit, but also jumps over the historical trading concentration area or the historical highest point, showing a strong upward trend.
The emergence of this daily limit pattern often means that the main capital has made adequate preparations and intends to continue to exert efforts after breaking through the key points.
The technical significance of over-the-top limit up and hitting the top limit up is quite similar. Both are intended to break through the previous highs or concentrated trading areas, thereby opening up new room for growth.
The strong performance of the daily limit at the time of breakthrough makes its subsequent upward momentum more abundant. The tighter the daily limit is, the more confident the main funds are in the future market, and therefore the greater the possibility of profit the next day.
However, the fact that the stock price has exceeded the daily limit does not necessarily mean that it will continue to rise. When trading, investors also need to analyze the stock price trend, changes in volume and energy, and the moving average system.
Especially when the stock price is already at a high level, the limit-up may be a false impression created by the main capital to induce more shipments. When choosing stocks with limit-up, you should try to choose stocks with limit-up in the middle and low levels to increase the success rate of investment.
Under benign technical patterns such as the stock price moving average showing a bullish arrangement and the gradually increasing volume, the appearance of an over-the-top daily limit often indicates that the stock price will continue to rise.
Investors can pay close attention to the stock price trend. When the stock price approaches the previous high point, the concentrated trading area or the historical high point, they can add it to their watchlists for attention. Once the stock price breaks through the new high and is about to reach the daily limit, they can decisively place an order to buy.
During the operation, investors also need to pay attention to risk control. Although the upside potential of stocks that have exceeded the daily limit may be large, investors should not blindly chase high prices. When buying, a reasonable stop loss point should be set. Once the stock price falls below the stop loss point, the investor should stop the loss in time to avoid further losses.
Investors also need to pay attention to the overall market trend and the fundamentals of individual stocks. If the overall market trend is not good or there are major flaws in the fundamentals of individual stocks, then even if there is an over-the-top daily limit pattern, investors should remain cautious and avoid blindly following the trend.
The over-the-top limit is a stock pattern with great potential for growth. When selecting stocks and operating them, investors need to conduct a comprehensive analysis based on factors such as the stock price trend, volume changes, the moving average system, the overall market trend, and the fundamentals of individual stocks.
During the investment process, investors should always maintain a cautious and rational attitude and not be affected by short-term market fluctuations. At the same time, investors also need to continue to learn and accumulate experience to improve their investment level. Under the premise of risk control, seizing the investment opportunities of stocks that have exceeded the daily limit is expected to obtain rich returns.
When choosing stocks that have exceeded their daily limit, investors also need to pay attention to the following points:
First, we need to pay attention to the fundamentals of individual stocks. Only stocks with good fundamentals have the potential for sustained growth. When choosing stocks that have exceeded the daily limit, investors should pay attention to factors such as the company's profitability, growth, industry status, and management quality.
Secondly, we need to pay attention to the technical form of individual stocks. In addition to the form of over-the-top limit, investors also need to pay attention to the stock price moving average system, volume changes, and technical indicators. When these technical factors show a good trend, individual stocks are more likely to continue to rise.
Finally, we should pay attention to the overall trend of the market. The overall trend of the market has an important impact on the trend of individual stocks. If the overall market trend is not good, then even if the individual stock has an over-the-top limit pattern, it may be difficult to continue to rise.
When choosing stocks that have exceeded their daily limit, investors also need to pay attention to the overall market situation in order to make more accurate judgments.
Although the stock price that exceeds the upper limit is a stock pattern with great potential for growth, investors need to consider fundamentals, technical patterns, market conditions and other factors when selecting and operating stocks that exceed the upper limit. Under the premise of risk control, only by seizing the investment opportunities of stocks that exceed the upper limit can we expect to obtain rich returns.
In the investment market, there is no method that can ensure victory in every battle. Investors need to continue to learn and practice, accumulate experience, and improve their investment level. Investors also need to remain calm and rational, not be affected by short-term market fluctuations, and stick to their investment strategies and principles.
In addition, investors also need to pay attention to policy changes and market dynamics. Policy changes often have a significant impact on the market, so investors need to pay close attention to policy trends in order to adjust their investment strategies in a timely manner. At the same time, investors also need to pay attention to market hot spots and trends in order to seize investment opportunities in the market.
For investors, the stock price that exceeds the daily limit is a stock pattern worthy of attention. However, it is not easy to successfully seize the investment opportunities of stocks that exceed the daily limit.
Investors need to have rich knowledge and experience, and also need to pay attention to market dynamics and policy changes. Only by comprehensively considering various factors and formulating an investment strategy that suits them can they achieve long-term and stable returns in the investment market.
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