1, whether the moving average system is adjusted in place (when it rebounds to the bottom, it means whether the decline is in place. )
2. Daily K-line trend
3. Transaction volume
Second, whether the average adjustment is in place:
The moving average, in the final analysis, is the investor's shareholding cost line. Different moving averages represent the average holding cost of investors in different time periods. The half-year line represents the average shareholding cost of investors for half a year, the 30-day line represents the average shareholding cost of investors in the past 30 days, the 10 line represents the average shareholding cost of investors in ten trading days, and the 5-day line represents the average shareholding cost of investors who participated in the transaction in the last five trading days. Therefore, the essence of whether the average adjustment is in place is to see whether the cost of holding shares tends to balance in stages. If the staged holding costs of investors are basically the same, then the downward momentum will be greatly weakened. And phased adjustment may be appropriate.
The sign of short-term to rising stage balance is:
Accurate bargain-hunting point1:When the 5-day line approaches the 30-day line, it will gradually level off.
The second key point of accurate bargain-hunting: the K-line gradually becomes shorter during the adjustment process, becoming the K-line form of Xiaoyin Xiaoyang or Cross Star.
Accurate bargain-hunting point 3: With the gradual shortening of the K-line, the transaction volume has shrunk significantly.
Conclusion: Once the 5-day line is basically flat when it is close to the 30-day line, the daily K-line of the stock price converges to the Xiaoyin Xiaoyang line, and the trading volume shrinks sharply, the stock price is likely to have reached the bottom of the stage, at which time it can accurately bottom out. If the stock price rises in volume, the bottom is more certain.
Third, how to accurately explain the bottom:
1, when the band is accurately bargain-hunting, the 30-day line must be in a rising state;
2. The accurate bargain-hunting method has high reliability in the early stage of stock price operation, but the reliability decreases in the middle and late stage of stock price operation;
3. If there are accurate bargain-hunting conditions on the 5th line, it is far from the 30th line and close to the 10 or 20th line, the upside potential of the market outlook will be relatively reduced;
4. When this method is applied to rebound bargain hunting, the first point needs to be modified accordingly (please pay attention to the subsequent rebound chapter for details);
5. The application of this method may be irregular, but as long as the above three points are met, the principle of bargain-hunting is still the same;
The biggest change in the stock market is change. So when you learn methods, you must understand the principle on the basis of memorizing methods. Only by thoroughly understanding the principle of this method can we use it flexibly.
Conclusion: Once the 5-day line approaches the 30-day line, the K-line converges into a small-yin-small-yang line, at the same time, the trading volume shrinks sharply, and the stock price may bottom out in stages, which can accurately bargain-bottom.