The shrinkage and sideways trading after the stock fell means that the individual stock may have fallen to the bottom after a long period of decline. At this time, the bulls have no longer allowed the stock price to continue to fall, which means that the long and short forces are relatively evenly matched, so low sideways trading occurs.
Therefore, when this situation occurs, it generally means that the stock price may not continue to fall, but has just entered a stage of box shock.
The early rise was too large and the time was too fast, so when it came back, it was "time for space".
When this situation occurs, you can perform band operations within the box, buying low and selling high.
You can also mainly wait and see, waiting for the market trend to become clear before buying.
If after a long period of shrinkage and sideways trading, the company has major positive news, you can buy it; when after a long period of shrinkage and sideways trading, there is a technical turning point.
K lines such as Dayang Line, Chushui Furong and other K lines indicate that the stock price may have begun to reverse, and this is the time to buy.
In short, when encountering the situation of shrinking sideways after a decline, you should not be too greedy.
Shrinking sideways trading means that the stock price fluctuates very little within a period of time, does not show an obvious upward or downward trend, and is accompanied by a significant reduction in trading volume compared with before.
At this stage, the amplitude is small and the direction is difficult to grasp, which also confuses investors. At this time, investors should wait and see the changes, do not participate in operations, and wait until the situation becomes clearer before making specific operations according to the situation. If they catch a ride, then
Even better.
Shrinking sideways trading in the stock market is usually accompanied by the main force's operation.
For example, when a stock is occupied by major funds, it will be shaken and raised accordingly. At this time, the main force has also attracted enough chips, and the stock price is also rising continuously. When the stock price rises to a certain level, in order not to
After affecting the subsequent operations, the main force will carry out corresponding washing operations. On the one hand, it will eliminate those investors who are not determined and reduce the main force's cost of raising prices; on the other hand, it will create an appearance of a sideways break and the market outlook will continue to rise, to attract and
Stabilize investors.
At this time, the main force will not interfere too much with the stock price operation, allowing retail investors to buy and sell freely, so the trading volume at this time will not be large. Sometimes, in order to maintain the stability of the stock price, the main force will also take appropriate action. Some main force will also
It will lower the stock price appropriately, so basically it is difficult for the stock price to rise or fall significantly at this time. In this case, most of the market outlook will still have an upward trend.
Sometimes when a stock shrinks and trades sideways at a high level, the stock price will fall in the market outlook.
The specific situation must be analyzed in detail. Different main players have different operating styles. If investors want to intervene at this time, they must wait until the stock price rises again before considering it, and set a stop loss point for short-term operations. Once the stock price turns around,
Just get out decisively.