[Editor's note] There are two original purposes for writing this kind of short article. One is to entertain and enjoy myself. I want to make notes of the knowledge I have learned and then put them on the platform. Open it again when you need it to review the skills you learned. The second is to share with friends who like this knowledge, exchange knowledge, and improve each other's ability in a certain area of ??interest. But every time I write, I always think of a question: Will this article cause trouble for the platform's backend review? Of course, I personally believe that the content covered in the short article does not involve the laws and regulations of our country, because I am a retired old man who abides by the rules.
I once wanted to use the above paragraph as an "editor's note" for this type of short article. Maybe try it today.
Quantitative follow-up strategies include finding the starting point of the market, establishing the concentration of chips at the beginning of the first wave of the market, and calculating the concentration of chips at the end of the first wave of the market. I will outline it slowly below.
1. Five prerequisites for the market’s breaking point
The breaking point must meet the following five conditions at the same time:
1. The day must be the daily limit.
2. Break through the previous high or break through the box.
3. Volume must be increased to prevent false rises.
4. The top chip peak has been formed.
5. The old stereotypes have basically been washed away.
2. Establish the concentration of chips at the first wave of detonation
In the above figure, the concentration of chips at the detonation point is 13.7%. Then take 13.7. At this point, the stock price has exceeded the previous high, and the volume is relatively high. At the same time, looking at the chip peak, there are almost no "white" chips, indicating that the trapped chips have been basically washed away. At the same time, the top chip peak dominated by the banker has been formed. This meets the five conditions for this stock to explode.
So how to predict when this wave of market will end? According to the wave theory, when the concentration of chips is equal to or greater than 13.7×2=27.4, the market is about to change, and the rising market is about to become a falling market, so we should ship and leave the market.
3. The first wave of market ends when the concentration of chips reaches 27.4.
When the concentration of chips exceeds the peak quantitative value of 27.4, the first wave of the market will end and goods must be shipped. field. The picture above shows that the chip concentration ratio has reached 31.4 on that day, so you must leave the market, otherwise you will be arbitraged when the stock price drops the next day!
? ? 4. Calculation method of vertex quantification
The first step is to determine the detonation point and find out the X value of the chip concentration on the day of detonation. As in 13.7 in the above example.
The second step is to calculate the Y value of the first wave vertex quantization value. The first wave of vertex quantization values:
Y=2×X. If we follow the above example, then Y=2×13.7=27.4. So why "2" was chosen, this will be explained in the list below.
The third step is to check the chip concentration Z value of the day at any time. If Z>=Y, it means that the chip concentration Z has reached or exceeded the peak quantitative value Y, and must leave the market to ship. Comparing with the above example, when Z=31.4>Y=27.4, quickly ship out and leave the market.
The fourth step is that after the first wave of the market ends, the market maker starts to rise again after a brief adjustment, then the adjustment stage is the second wave, and the continued rise after the adjustment is the third wave. And so on. How to calculate the vertex quantization value Y? See the table below:
Explanation: 1. Why not consider the second and fourth waves? Because we only consider the upward pull-up wave, excluding the downward adjustment and fall-back wave of the stock price after shipment.
2. The calculation coefficient is determined by the wave theory. The calculation coefficient of the first wave is 2, and the coefficient of the third wave is 3. From now on, the calculation coefficient is the number of bands - 1. For example, for the fifth wave, the calculation coefficient is 5-1=4.
The stock market is risky, so be cautious when entering the market!