The most important thing is to look at the trading volume. The real bottom is not the lowest price in the minds of retail investors on a certain day, but a bottom area.

There has been a long-term shrinkage in trading volume. The reason for the shrinkage, or the amount of land, is that not many investors are paying attention to the real bottom area, so there are basically no transactions. It is precisely because everyone has lost confidence in this that it has caused the formation of the bottom.

There was a sudden increase in volume

The increase in volume must be the re-involvement of institutional funds. Retail investors will not have such a shock. The long-term shrinkage, relatively low level, and increased volume, it is obvious that the institution wants to pull up, or try to test how strong the selling pressure is. So after this heavy volume point, it may go all the way up, or it may continue to retreat. It doesn't matter. There are already institutions entering the market at the relative bottom area. What are you waiting for?

When a short-term bottom is formed, it is usually a V-shaped reversal. After the technical indicators are oversold, there will be a rebound turning point. However, this situation will test a lot of operational capabilities. You cannot enter the market when there is no rebound, because the possibility of the decline process continuing is very high; however, after a rebound, you still need to consider how much room for growth there is above, and whether buying on the same day will rush higher in the afternoon and fall back the next day. Profits or even losses have to be cut off.

So I don’t advocate period.

The long-term bottom needs the support of fundamentals. There are several situations: one is that the price of the company's main products has stopped falling. This is mostly seen in the chemical industry, metal smelting and processing industries, etc. After Kweichow Moutai suppressed the consumption of three public goods, the price of Feitian batch fell sharply. In 13-14 years, two years is the long-term The bottom is constructed, and Feitian's price recovery has gradually increased since 2015, which indicates the end of the bottom and the beginning of the rise. In other aspects, policy improvements have given the industry hope of turning losses into profits. In addition, a surge in demand can also be a signal that the bottom ends and the rise begins.

The annual line identifies rebound and reversal trends

As shown in the figure, the stock price broke through the annual line for the first time in the long-term decline, and then began to return to the annual line. After receiving support at the annual line, it once again increased its volume and exceeded the new high during the previous breakthrough; then the stock price fell back sharply again and was supported at the annual line again, and launched a counterattack again. In such continuous corrections and upward attacks around the annual line, we must realize that the first and second upward attacks are just rebounds in a long-term decline. The third upward attack will be the market reversal. At this time, we It can be seen that the retracement point is getting higher and higher, and the high point of the upward attack will also be higher and higher. With such multiple rebounds and upward attacks, the annual line has begun to change from falling to rising. The first two rises were rebounds. The third rise is the reversal.

The industry to which the stock belongs, whether it is banking and insurance, coal, gold, home furnishing, or building materials, each market situation will receive different levels of attention under different market conditions. Some industries are in a downward channel, and the decline may be as much as will be larger. Some industries are strong industries and may rebound immediately after a short-term decline.

What this means is that if the stock sector you hold is currently a cyclical sector, it needs to be combined with the current market environment, such as coal. The entire sector is subject to corrections due to market factors, and the magnitude of each correction may be large. . Generally, if there is a correction of more than 30%, the stock's decline will also be between 30% and 50%. If what you hold belongs to the pharmaceutical sector, due to the good overall industry performance, the correction may only be about 5%, and the decline of individual stocks will only be 5%-10%. Stopping the sector's decline will drive individual stocks to rebound. Therefore, you must understand the current sector of the stock you hold. Popular sectors have a small correction and a quick rebound. If no one pays attention to the unpopular trend, the correction will be larger and there will be no rebound for a long time.

So, if you want to find bull stocks in the stock market, you must start from both "internal and external" aspects. Only when you have the characteristics can you build a position.