When trading stocks, we ordinary retail investors are often not sensitive to the market, so chasing the main force is basically what most people will do, but the main force trend is not so well understood. Today, let's take a look at what the main force trend index means and what do you think?
There is a conspiracy in the main trend, because retail investors are often very dependent on the main trend, and it is easy to fall into these traps. We must be careful when judging the operation direction of the main trend.
under normal circumstances, we are used to judging the main operation direction based on the analysis of capital flow, and combining these data, we can predict the rise and fall of the stock price. When there is a conspiracy, there is a big gap between the predicted stock price and the actual stock price.
We analyze the main trend indicators from the following three aspects:
First, when the stock is in normal operation, it is suddenly hit by a big selling order to the limit or nearby, and then it is quickly pulled up, or the stock price is quickly pulled back after being greatly pulled up by a big buying order. In this case, the main force is generally trying the market, and the downward selling is to see if the stock price can be pulled up and test the firmness. If this stock often closes the shadow line, it will have a greater possibility of pulling up the main force, and if it closes the shadow line frequently, it will be possible to flee the main force.
second, the stock has been in a depressed state for a long time, but one day the stock price suddenly changes and there are huge selling orders hanging on the selling orders, but less money is paid. At this time, it is the main position to eat the selling orders hanging on the first, second, third and fourth gears. At this time, the selling orders are not short, but the main chips, mainly to attract investors' attention, so the selling orders are eaten at this time, so the strength of the main force can be seen, but investors had better not do so at this time.
Third, when a stock continues to decline and sustained support action appears, it does not mean that the stock price will stop falling in the afternoon. The main support means that the main strength is not strong and there is no way to promote the stock price. At this time, there is still room for the stock price to fall. However, it should be noted that when the stock price is at a low level, the market will strengthen, which means that the stock will break out and may get high returns.
Let's take Julun as an example to see what the main trend indicators look like.
Although robots are a popular sector, Julun shares fell by 22% against the trend from December 15th to 22nd. However, in fact, we carefully observed the green column and found that the main trend had already been hinted. On December 15th, the main trend color changed from red to green. At this time, we should be vigilant. Pulling out the green column on the 15th indicated that the main force was retreating.
from the above picture, we can find that the obvious trading signals are that the main force attacks the red column and retreats the green column, but it is not common. Generally, the main force hides very well and will not launch a very fierce offensive. The main force trend indicator has no columns but only color areas. At this time, we need to judge according to the red and green areas.
1. The color zone changes from green to red, indicating that the main force is active, and radical investors can participate at this time. Steady investors can wait until the length of the red zone exceeds the length of the previous green zone and the main force trend is obvious.
2. The color zone changes from red to green, indicating that the main force is beginning to correct, and conservative investors should lighten up their positions to avoid risks. Fund investors can wait until the length of the green zone exceeds that of the previous red zone, and then lighten up their positions when the main force trend is obvious.
The red and green column indicators can better reflect the strength of the main force's single advance and retreat, and we can see a series of operations in the normal period of the main force. If we look at the two together, we can see the real intention of the main force more comprehensively.