There are many technical indicators, and the meaning is different after being broken. For example, the MACD indicator belongs to the midline indicator. Once it is at a high level, it means that the stock price will have an intermediate adjustment. Another example is the lower track of the bollinger band indicator. Generally speaking, before the lower rail of the Bollinger Band is broken, it is necessary to judge whether it will fall below its lower rail by comprehensive technical indicators, plate trends, gaps, supply and demand, policies and other factors. If it is beneficial to the empty side, then it is an inevitable choice to lighten up on rallies before breaking the position.

However, the break of the lower rail often means that the time for short-term bargain-hunting has emerged. It's just the fracture of the lower rail in band adjustment, which is different from the fracture of the lower rail in bear market.

Damage of medium and long-term moving average

At this time, breaking the position generally means turning the tide and there is more room for adjustment in the future. For example, once the medium-term moving averages (30-day and 60-day moving averages) are broken, it means that there has been a band high point, and the middle line should be out at this time; Once it breaks through the long-term moving averages (120 and 250-day moving averages), it means that the stock has started a bear market cycle, and the long-term should leave at this time.

Of course, there will often be false broken positions in actual combat. Due to the sudden bad news or the deliberate suppression of the main institutions, the stock price briefly fell below the support of the important moving average and soon recovered. This is a trap. Generally, there will be many such situations in the mid-term band adjustment of bull market. Those who were out of the game might as well kill another one and make a comeback.

Breakage of important points

The important bottom of the market in history has strong technical and psychological significance. Before falling below, people felt that the adjustment was not in place, and it was not the time to bargain-hunting. Once broken, it usually leads to the influx of bargain-hunting funds, but the stock index can easily bottom out. Breaking the position at this time may be a signal that the market has turned around.

Investors need to guard against risks before they break their positions, and once they break their positions, they should consider how to seize opportunities instead of blindly killing them. For example, 13 1 1 was the low point hit by the market in June this year. Recently, the stock index fell below this low point, so it can't stand. Can it stand after it is "broken"?

Failure of high consolidation zone

This is mainly for some Zhuang stocks that have been consolidating at a high level for a long time. Generally speaking, once these stocks fall below the consolidation area by means of big yinxian, downward gap and daily limit, it is the beginning of "diving" and has great lethality.