How to buy the bottom of stocks that continue to decline in 2022. Stock decline refers to a slow and continuous decline in stock prices over a period of time. During the decline, there is often a weak rebound, which is usually manifested as a "one step forward, two steps back" trend.

So today, the editor is here to sort out the relevant knowledge about stocks for you, let’s take a look! How to buy the bottom of stocks that continue to decline? It is understood that several common bottom shapes in technical analysis are: V-shaped bottom, arc bottom

, W bottom, multiple bottom.

Among them, V-shaped bottoms are mostly seen in plummeting and sharp market declines. Generally, there are major negative factors. The stock price falls rapidly in a short period of time. After a period of time, the negative factors are clarified and the market reverses quickly.

If you are buying at the bottom of a continued downward trend, you should buy at the end of the downward trend. The V-shaped bottom is difficult to grasp, and you need to analyze the reasonable valuation of the stock based on fundamentals; the arc bottom gradually flattens at the end of the decline, and the K-line chart

The number of small and medium positive lines begins to increase, and trading volume begins to gradually recover; it is best to start building positions when W bottoms and multiple bottoms are about to form a second low.

What indicators should you look for when buying stocks at the bottom? 1. Huge turnover rate.

If the price of this stock has reached the daily limit, and the turnover rate is relatively large, the turnover rate is more than 5%.

At this time, even if there are signs of shipments by the main force, they will maintain the consolidation and shock in the previous period to lure investors and create the illusion of a long market.

Under this circumstance, investors who are short-term bargain hunters can gain greater profit potential.

2. KDJ indicator.

If the weekly KDJ indicator is below the 20-day range and its J value turns upward, this is when the opportunity comes.

If the daily KDJ indicator is below the 20-day range and forms two or three golden crosses.

If the negative value of J value breaks through the golden cross of KD value upward, this is a short-term rebound trend.

How to buy stocks at the bottom, triple bottom.

We often say that there are only three things that can happen. After the market and stocks have stabilized after a long-term decline, the K-line pattern has touched the bottom three times in a row without making a new low, and the volume has increased on the right side, while the right side has the characteristics of amplified trading volume. At this time, if

If you break through the neckline, you must buy decisively.

2. Arc bottom.

Such a form is that the market or individual stocks stabilize after falling, forming an arc-shaped bottom form at the bottom. During this period, the trading volume is often not too large, but once the trading volume gradually increases, it is our buying

It's time to get in.

3. Organize the box.

After the market or individual stocks have fallen for a long time, there will be a state of sideways trading, allowing the K line to form a box. When the bottom is on the right side of the box, the trading volume gradually increases, and finally breaks through the top of the box, it is a bold purchase.

when.

What are the risks of bargain hunting in stocks? 1. Risks of bargain hunting in market trends.

If the market is at the low level of a "bear market", most stock prices in the market will be at a relatively low level during this period, and the degree of adjustment will be limited based on the market trend.

The trading volume of market stocks is also in the doldrums, short-side funds are in a dominant position, and the market's investment sentiment is also at a poor stage.

If investors are bargain-hunting during this time period, they need to pay attention to the possibility that the market's short forces or bad news will intensify and continue to guide the market to continue to decline and adjust.

Just like the market situation in October 2018, most investors in the market trend at that time believed that the low of the Shanghai Stock Exchange Index was around 2638. However, due to the subsequent bearish power and the influence of bad news, the market reached a new low.

2. Risk of market policy bargain hunting.

The A-share market is a policy market. When the market is in a "bear market" stage, the state will issue a lot of policy news to "rescue the market" to stimulate market investment enthusiasm and make the market index and individual stock prices recover.

If investors are bargain hunting during this period, they need to pay attention to the "rescue" policy news given by the state and whether the subsequent market will "buy in".