Dunnigan is a believer in Du's theory. In addition to studying the trend chart, he has a profound understanding of the futures market and developed a set of "thrust method" as a short-term investment trading system. The goal of his trading system is to find the right market price to buy near the lowest price and sell near the highest price before the market price turns, with the goal of maximizing profits. According to him, it is the best time to buy as long as the following situations occur.
1, the market price hit a recent low.
2. In a certain period of time after hitting a new low, the price suddenly rose one day, which was higher than the closing price of the previous day.
3. The whole-day price fluctuation of this day must be less than half of the day with the biggest fluctuation during the decline.
The high and low prices of this day should be within the fluctuation range of the price of the previous day.
Graphically, the above conditions are to meet four conditions: (1) hit a new low price; (2) the decline narrowed, indicating that the selling pressure was reduced; (3) It rises after hitting a new low, which is the rebound stage; (4) It is important to add that the amplitude is within the range of the last day. Because if yesterday's closing price is higher than the previous day, but the low level is also lower than the previous day, it means that some people are still bearish and pessimism still hangs over the market. But if the low point is also in yesterday's range, it means that the market price refuses to hit a new low, which is a short-term sign. These signs are all signals of coming in, and we can fight in the short term.
If all the above conditions are contrary, it is a short-term shipment or the best sales opportunity:
1, the stock price hit a recent high or a historical high; 2. After hitting a new high, the price of a certain trading day fell and was lower than the closing price of the previous trading day; 3. The volatility of the stock price throughout the trading day must be greater than that of the previous trading day; 4. The high and low prices of this trading day are lower than those of the previous trading day.
The above conditions are that the graphics meet the following four conditions: (1) hit a new high price; (2) After hitting a new high, it falls, which is the stage of returning to the file; (3) Amplitude amplification indicates that the selling pressure increases; (4) It is very important that the high and low points move down and there is a downward trend. When the market price reaches the peak, it will fall back, so it is the enlightenment of "thrust method" to take action before others.
Dunnigan's "thrust method" tries to find out whether the market has the power to push back after falling, or whether the market has the power to push down the price after rising. Dunnigan himself defined "power" as "price rising", that is, rising after falling. Generally, people who study charts know the trend of head, shoulder, triangle, dome, double bottom and double top. Besides graphic trends, trend analysis has many other theories. Dunnigan's thrust method is one of them. It provides an easy-to-grasp concept, trying to find a way to buy near the lowest position and sell near the highest position, which is of great reference value to short-term investors. However, this trading system is only suitable for short-term investment and does not inspire many long-term investors. Low rebound, it is possible to rebound for a day or two and then fall. Repeated falls at high levels may also be short-term adjustments. After a round of adjustment, it will sprint again, so the long-term investment reference theory has little effect.