About the application and practical skills of weekly lines
Different people have different views on stock skills, and everyone has different understanding of the stock market, techniques, methods and knowledge. In fact, illustrations of stock market reading skills are quite critical. If you don’t know how to read the market, you can easily fall into loss. Here are some practical skills about weekly trading for your reference.
Talk about the practical skills of weekly application
The daily line is a reflection of the daily fluctuations of the stock price, but if we are too obsessed with the daily rise and fall of the stock price, we will "see only the trees. "You can't see the forest", so to grasp the stock price trend from a longer period, you have to use weekly charts to observe. Generally speaking, on the weekly chart, we can find buying and selling points by observing several phenomena such as the highest oscillation, second golden cross, resistance level, and divergence between the weekly and daily lines.
1. The weekly and daily lines are oscillating. The weekly line reflects the mid-term trend of the stock price, while the daily line reflects the daily fluctuations of the stock price. If the weekly indicator and the daily indicator send out a buy signal at the same time, the reliability of the signal will be greatly increased, such as the weekly KDJ and the daily line. The KDJ line is always oscillating, which is often a better buying point. The daily KDJ is a sensitive indicator that changes quickly and is highly random. False buy and sell signals often occur, leaving investors at a loss as to what to do. By using weekly KDJ and daily KDJ to be in the same golden cross (thereby causing a "positive shock"), you can filter out false buy signals and find high-quality buy signals. However, in actual operations, we often encounter such a problem: since the daily KDJ changes faster than the weekly KDJ, when the weekly KDJ Jin Cross, the daily KDJ has already Jin Cross several days in advance, and the stock price has also risen for a while. , the buying cost has increased. For this reason, aggressive investors can buy in advance when the weekly K and J lines hook up and a golden cross is about to form, in order to reduce costs.
2. Second golden cross on the weekly line. When the stock price (weekly chart) rebounds after a period of decline and breaks through the 30-week line, we call it a "weekly golden cross". However, at this time, it is often just the bookmakers who are building positions. We should not participate, but should Stay on the sidelines; when the stock price (weekly chart) breaks through the 30-week line again, we call it a "second weekly golden cross", which means that the market maker's washout is over and is about to enter a period of upward growth, and there will be a larger increase in the market outlook. At this time, you can pay close attention to the trend of the stock, and once its daily system sends out a buy signal, you can boldly follow up.
3. Peripheral resistance. The support and resistance on the weekly chart are more reliable than those on the daily chart. From the market trend this year, we can find a pattern. From a weekly perspective, the first rebound of many oversold varieties often reaches near the 60-week moving average, and there are considerable changes. Based on the analysis of the weekly K-line form, if the overshooting weekly K-line touches the 60-week moving average with a long upper shadow line, such a trend indicates that the 60-week line is under great pressure, and the price will probably fall back in the market outlook; if it touches the 60-week moving average with a long upper shadow line, If the weekly line crosses or even touches the 60-week moving average, then it is very likely that the market outlook will continue to rise and completely break through the 60-week moving average. In fact, the 60-week moving average is the annual line in the daily chart, but it is difficult to distinguish the willingness to break through by looking at the annual line alone. The trend is often difficult to separate due to the continuity of single-day fluctuations, and the weekly inspection time is longer. Once The stability is better after the breakthrough, and we have enough time to determine the investment strategy.
4. Divergence from the perimeter. The daily divergence cannot confirm whether the stock price has peaked or bottomed, but if the important indicators on the weekly chart show bottom divergence and top divergence, it is almost a reliable signal of intermediate or above bottoms (tops). You may wish to review important bottoms in the past. And the weekly indicators at the top should be a good reference for finding future bottoms.
The most credible is to use the monthly K-line combination
The K-line is a comprehensive reflection of the price trajectory, whether it is the opening price or closing price, or even the upper and lower shadow lines represent It has profound meaning, but the use of K lines must not be used mechanically. The K lines or K line combinations that appear at different stages of the trend operation have different meanings. The author believes that to study K-line, we must first understand the following elements.
First, for the same K-line combination, the monthly line has the greatest credibility, followed by the weekly line, and then the daily line. Of course, some investors like to analyze the annual line or the minute line. Through research on the futures market and the stock market, the author believes that the reference is of little significance. The combination with a bullish monthly line has the highest probability of rising, and the combination with a weekly bullish trend has high credibility. The daily line has a higher probability of cheating, but it is very commonly used. Therefore, when using K-line combination to predict market outlook, the daily line must be used in conjunction with the weekly and monthly lines for better results.
Second, the appearance of the same K-line combination at different stages of stock price operation means different meanings. For example, if the same harami appears at the end of the decline period, it is more credible than the bottom signal that appears during the shock stage. Therefore, we cannot think that the bottom has arrived as soon as we see the harami line or morning star line. We must look at it in conjunction with the entire trend. Third, the K-line combination must be viewed in conjunction with the trading volume. Trading volume represents the consumption of power and the intensity of the game between the long and short parties, and the K-line is the result of the game. If you only look at the K-line combination without looking at the trading volume, the effect will be halved. Therefore, trading volume is the motivation and K-line shape is the result.
The above three elements are the prerequisites for studying the Yin and Yang K-line. Only by paying attention to these three points can we study the K-line.
Talking about my method of selecting and eliminating indicators
Now, as long as you open the formula website, you will be dazzled by the various and colorful formulas. , maybe you download them all, thousands of them! Which ones do you use? Use this today, use that tomorrow. In the end, you are still at a loss, and you have fallen into a sea of ??indicators. If you have good escape skills, you can escape from danger. If you indulge in it and cannot extricate yourself, you will suffer deeply.
Let me tell you about my experience:
When I didn’t have the ability to create, I used doctrine as I did at the beginning. This is how I got through it, but now There are thousands of formulas, can you get so many? You must not accept them all. This is called swallowing the jujube. It will not only cause indigestion, but also endanger your "life". It should be targeted and choose valuable ones. What is a valuable indicator? To measure whether an indicator is valuable, you should first put the indicator into history and see its performance in history——
(1) If it is a trend indicator, it should be Let this indicator verify the historical trend; if it cannot clearly reflect the historical trend, or reflects it incorrectly, can it accurately reflect the future? This kind of indicator must be abandoned resolutely. We should choose the correct indicator that clearly reflects the historical trend, then spend time identifying its flaws, and then find ways to make up for its flaws.
(2) If it is a top-bottom indicator, the indicator should be allowed to verify the historical top-bottom; if it cannot clearly reflect the historical top-bottom, or reflects it incorrectly, can it reflect it correctly? In the future? This kind of indicator is resolutely abandoned. We should choose the correct indicator that clearly reflects the historical top and bottom, then take the time to find out its flaws, and then find ways to make up for its flaws.
(3) If it is a stock selection indicator, the indicator should be used to verify the dark horses in history; if the dark horses in history cannot be clearly reflected or reflected incorrectly, can it reflect them correctly? A dark horse in the future? Then why should we be able to select a dark horse:
Because the indicators that can select a dark horse must be good indicators. Note that I emphasize here that they must be universal, and you cannot only select specific dark horses. Pick. If a certain indicator can select a dark horse and is universal, then even if the stock selected by it is not a dark horse, its success rate will be very high, whether it is in a bull market or a bear market.