After a long period of shrinkage, the stock price slowly jumped into the low zone and suddenly began to drop sharply. After that, we will build a double bottom pattern, resolve the pressure brought by the sharp drop in the previous trading volume, and enter the upside market. When the trading volume drops sharply, it is often accompanied by some bad news, or the market is in the stage of sharp adjustment in the same period, and the main force also takes the opportunity to start to suppress it. The rapid plunge has a strong deterrent effect on retail investors. After a long period of slow decline, the patience of retail investors has been exhausted and they are disappointed with the stock, but they may still be lucky and unwilling to cut the meat out. At this time, if there is an accelerated decline in trading volume, accompanied by negative interest or further deterioration of the market environment, the remaining confidence of retail investors will be crushed and panic will occur, while the main force will take the opportunity to absorb a large number of cheap chips. After the main fund-raising, do a double bottom, clean up a small number of retail investors who follow the bargain-hunting when they plummet, and then the stock price can rise with the stabilization of the broader market.
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First, when using this technique in actual combat, we should pay attention to the following points:
1) The falling time should be long enough and the deletion index should be kept at a low level.
Change. The jumping range should be large enough, and the greater the drop, the stronger the reliability. Only enough decline can ensure that the main force will have enough room for a round of rebound and obtain considerable profits even if it cannot reverse the stock price into the bull market.
2) After the slow decline, there must be an obvious process of accelerating the heavy volume plunge, so as to really kill the panic plate and the main force can absorb enough cheap chips for the pull-up.
3) The entry point should be safer when there is a double-dip trend, the trading volume shrinks again, the floating chips are cleared, and the market environment has improved, so it is not necessary to rush in immediately after the plunge.
Second, the decline of dishwashing and shipment is different, the stage is different, the number of times is different, and the speed of callback is different.
1, the decline is different. The decline in dishwashing is not great. Generally, it will not fall below the daily line 10. Even if it falls below, it will eventually be pulled back. If you fall too deep, cheap chips will be picked up by retail investors, which is not conducive to the market outlook. The purpose of the main shipment is to sell all the stocks in hand, regardless of whether the moving average falls below or not.
2. The timing is different. Most dishwashing choices are when the market fluctuates or individual stocks are bearish, while shipping choices are when the market is soaring or individual stocks have good news.
3. At different stages, after the first wave of rise, there was dishwashing, and the stock price was at a relatively low level. Shipment occurred after more than two pull-ups, and the stock price was relatively high.