The application of different indicators is different. Most people want to see the market changes of different stocks, so understanding different indicators can also better analyze the stock market. The following is the meaning of Baota Line collected by Bian Xiao. Welcome to refer to.
What does the Baota Line mean?
TOWER is a graphical indicator that uses bars (or virtual entities) of different colors to distinguish the rise and fall of stock prices. It is mainly to show the process of long-short struggle and power change of stock price in the chart, so as to judge the future trend of stock price and choose the right trading opportunity. Baota Line Index believes in the investment philosophy of "not talking about the top when going up" and "not talking about the bottom when going down". It tells investors not to deliberately predict the position of stock price highs or lows, but to take corresponding selling or buying decisions when possible highs or lows appear.
Generally speaking, buying and selling stocks according to the method revealed by the Baota line index, selling stocks at high points or buying stocks at low points may cause some profit losses, but this method will not miss the emergence of rising markets or avoid the existence of falling markets, nor will it be easily knocked down in the consolidation market on the way up. Therefore, the Baota line indicator is more suitable for investors who operate steadily.
Application skills of Baota line
1. Once the tower indicator turns red (or white), the stock price also rises on the basis of the medium-and long-term moving average (or breaks through the medium-and long-term moving average) after a long period of consolidation in the mid-rising period. The appearance of this three-level pattern means the beginning of a new round of stock price rise, which is a buying signal sent by the tower indicator. At this point, investors should follow up and buy in time.
2. When the stock price is stagflation and consolidation in the middle and high-level areas after the surge, once the tower-shaped indicators turn black, the stock price falls below the medium-and long-term moving average almost at the same time. The appearance of this three-flat shape means the beginning of a new round of stock price decline, which is the selling signal sent by the tower-shaped indicators. At this point, investors should clear their positions and leave in time.
3. When the tower indicator turns red (or white) in the middle and low position, as long as the tower line releases a series of red (or white) entities and the stock price moves upward by relying on the short-term moving average, it means that the stock price remains strong and will continue to rise, which is a signal that the stocks held by the tower indicator are waiting to rise. At this point, investors should resolutely hold shares to rise.
4. When the tower indicator turns black at a high level, as long as a series of black entities are released from the tower line and there is no obvious white phenomenon, the stock price is also suppressed by the short-term moving average, which means that the stock price is still falling, which is a wait-and-see signal issued by the tower indicator. At this time, investors should wait and see mainly with funds.
Causes of stock index futures risk
1, price fluctuation
The stock market is a barometer of the national economy. Affected by many political, economic and social factors, the stock price index has been changing. However, the unique operating mechanism of the stock index futures market may lead to frequent or even abnormal price fluctuations, which may lead to greater risks.
2. Leverage effect
Futures trading adopts the margin system, and traders can trade only by paying a certain percentage of the futures contract value, usually 5% ~ 10%. This high leverage effect not only attracts many speculators, but also magnifies the existing risks of price fluctuations. Small price changes can also lead to greater risks. When market conditions deteriorate, they may be unable to pay huge losses and default. The leverage effect of futures trading is the main sign that it is different from other investment tools, and it is also the main reason for the high risk of stock index futures market.
3. Irrational speculation
Speculators are an indispensable part of futures trading. They are not only the undertakers of price risks, but also the participants of price discovery, which not only promotes the reasonable formation of prices, but also improves market liquidity. However, in the case of imperfect risk management system, speculators are driven by interests, and it is easy to use their own strength, status and other advantages to manipulate the market and other illegal acts. This kind of behavior not only disturbs the normal order of the market, distorts the price and affects the realization of the price discovery function, but also causes unfair competition and damages the legitimate interests of other traders.
4. The market mechanism is not perfect.
In the operation of stock index futures market, there may be liquidity risk, settlement risk and delivery risk due to imperfect management regulations and mechanisms. In the early stage of the development of stock index futures market, this imperfect mechanism will produce corresponding risks, and may lead to the decline of arbitrage effectiveness between stock index futures and spot market, thus making it difficult for stock index futures to function normally.