The reason for this is that the reversal itself is either a banker's suppression of fundraising or a deep dishwashing. Once the dealer finds that there are not many floating chips, but there are big orders in the low position, it will inevitably prevent cheap chips from falling into the hands of others, and it is reasonable to quickly raise them. This strategic thought originated from Laozi: if you want to indulge yourself, you must stick to your will; If you want to be weak, you must be strong; If it is to be abolished, it must be consolidated; If you want to take it away, you must fix it. It means that it will converge and must be expanded temporarily; If it is to be weakened, it must be temporarily strengthened; Will be abandoned and must be raised temporarily; If you want to take it, you must give it temporarily. This idea accords with dialectics. Chasing the enemy too hard will be countered. If we let the enemy escape, it will hurt his morale. Therefore, a clever conductor consumes the enemy's physical strength and will, rather than getting close to him, so that he can win without a bloody battle.
For the makers in the stock market, it is expensive to force up the price. Instead of this, it is better to wash the dishes sharply first and grind away the confidence and will of most investors before attacking. If you want to rise, you will fall!
Case Study: TISCO Stainless Steel (0825)
The stock was listed on1June, 1998 10, 2 1. After a wave of shocks, because the plate was too big to be completely controlled, it slipped down to wash the plate, breaking the important support line and trend line, and the moving average index also showed a downward trend, making the stock price lower than that of 4 yuan. In the process of decline, unstable investors cut their meat out one after another, while the main players continued to increase their chips. After the stock price reached 3.84 yuan, in order not to let the cheap chips below 4 yuan fall into other people's hands, it began a quick callback. We saw that the daily K-line chart of the stock showed a typical V-shaped reversal at the beginning of this year, and began to increase its volume after a little sorting around 4.50 yuan, which basically did not give short sellers a chance to breathe and became a big dark horse this year.
When using V-inversion, you must pay attention to:
(1) It is found that there is an obvious V-shaped reversal in individual stocks. Combined with the fundamental research of individual stocks, we should have the courage to cut the gordian knot.
(2) The bottom of the V-shaped inversion is preferably near the bottom of the previous period, or supported by an upward trend.
(3) In the early stage, the stock was a bull stock in the market (except for new shares), or there was a strong rise. Such stock makers usually don't go out, and V-reversal is more credible.