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10 tips for escaping tops in the stock market

Ten tips for escaping the top in the stock market : First, the MACD Sicha is the top signal. The second is that KDJ has peaked when it presents a bipolar shape. Third, be careful with the long upper shadow line. Fourth, the high-level Doji is a sign of risk. Fifth, it is auspicious to avoid double-headed and long-headed forms. The sixth is to break the important moving average and be vigilant for changes. Seventh, the single-day “T+0” transaction reduces costs. Eight is the second wave of weak rebound shipments. The ninth is to be cautious in making up the warehouse and shipping. Ten is the lower edge of the box is weak.

10 tips for escaping tops in the stock market

  1. MACD dead fork is the top signal

After the stock price has risen sharply, it has moved sideways , forming a relatively high point. Investors, especially those with a large amount of capital, must sell or lighten their positions at the first selling point . At this time, the technique for judging the establishment of the first selling point is “the stock price is sideways and the MACD is dead”, and the day of the dead fork is the time when the first selling point is formed. After the formation of the first selling point, some stocks did not fall sharply. It may be that the main bulls pretended to break through to cover the shipment after the callback, and the last time before the shipment was made. The technique for judging the establishment of the absolute top is that when the stock price rises and reaches a new high, the MACD cannot be synchronized. It is a clear signal that the stock price has peaked. The high point formed at this time is often the highest point of a wave of bull market. If you can’t escape smoothly at this time, the consequences will be disastrous. It must be explained that when selling stocks at the absolute top, you must not wait for the MACD to be dead before selling, because the stock price has fallen a lot when the MACD is dead, and you must refer to the K-line combination to sell stocks at the top of the virtual wave. This is also the disadvantage of MACD as a mid-line indicator.

  1. KDJ shows a bipolar shape and peaks

Usually, after a long-term or rapid unilateral trend , the market has a heavy or extreme reverse trend, and at the same time, it is supported by classic technical evidence. typical signal. When the J value of the KDJ indicator changes and turns down, sell 50% first; when the k value changes and goes flat, you can prepare to sell, and the k value changes and turns down, and the position is cleared; selling point. However, this KDJ indicator often fails because there is often a “bottom in the bottom” situation in technology.

  1. Be careful with long upper shadow lines

A long upper shadow is a clear top signal. In the rising market, the stock price rises to a certain stage, and the continuous heavy volume aggravates or continuously increases the volume for 3-5 consecutive trading days, and the daily turnover rate is above 4%. When the maximum trading volume occurs, its turnover rate often exceeds 10%, which means that the main force is pulling up and selling . If there is a long upper shadow line at the close, it indicates that the price has risen and fallen, and the selling pressure is heavy. If the stock price cannot recover the upper shadow line of the day before the next day, and the transaction begins to shrink, indicating that the market will adjust in the future.

  1. High Doji is a sign of risk

After a large room for growth, the systemic risks of the broader market may be bred and outbreaks. At this time, special attention must be paid to the daily K line. When there is a doji or an inverted hammer-shaped positive or negative line with a long upper shadow on the daily K-line, it is the key to selling stocks. The high-level doji on the daily K-line shows that there is a strong divergence between long and short positions, and the situation may change from a buyer’s market to a seller’s market. The high-level doji is like a red light at a crossroads when driving, indicating that the market will turn around, and shipments can be made to avoid risks.

  1. Avoid double-headed and long-headed patterns

When the stock price no longer forms a new breakthrough and forms the second head, it should be firmly sold, because from the first head to the second head is the main distribution stage. The M-shaped shape is that the right peak is lower than the left peak, which is a pull-up shape. Sometimes the right peak may also form an induced polymorphism that is higher than the left peak and then reverse and fall, which is more terrible. As for other head shapes such as head and shoulders top , triple The same is true for tops and round tops. As long as it falls below the neckline support, it is necessary to quickly close the holdings to prevent losses from expanding.

  1. Break the important moving average and be alert to change

After the heavy volume, the stock price fell below the 10-day moving average and could not recover, and then the 5-week line was also broken down, so it should be sold firmly. It is especially beneficial for those who have just been quilted to withdraw at this time. How to confirm the support level is particularly critical here. Generally speaking, if the 10-day moving average breaks on the first day and then pulls back on the second day but cannot stand on the support level (such as the 30-day moving average ), it is the confirmation of the broken position, and the time to pull back is the time to lighten up. If the stock price continues to break through important moving average indicators such as the 30-day or 60-day moving average , it will be resolutely liquidated. In addition, with the decline of the stock price, a descending channel has gradually formed, and the daily and weekly moving averages have been arranged in a short position. If there is a rebound after that, and the stock price does not stand firm on the 30- or 60-day moving average, it should be firmly sold.

  1. Single-day “T+0” trading reduces costs

Mainly rely on the daily fluctuation of the stock price, and use a small price difference to solve the problem. For example, if there are 100 quilts, the stock opened lower or the stock price fell today. When the price stabilizes and has a rebounding trend, buy 100 shares immediately. Once the stock rises, sell the previous 100 shares to make a profit; if the stock opens higher Or you can sell 100 shares after reaching the peak, and then buy back 100 shares after the stock price falls, which reduces the loss of the falling part. In this way, the gains can be doubled or even multiple times, and the losses can be reduced or even gained when the losses are reduced, so that the costs can be reduced until they are released.

  1. The second wave of weak rebound shipments

When it falls below the low point of the previous wave, sell (the limit down price) the weak stocks. When there is a substantial negative, open low and go low, the rebound cannot exceed the opening price , and then reverses and falls below the first wave of lows, the technical index has weakened, and the market price should be rushed out. When the wave rebounds and cannot cross the high point again, and reverses downwards, place a sell order immediately.

  1. Be careful when making up the warehouse

When the stock market falls to the bottom of a certain stage, the method of covering short positions can be used, because the stock price is far from the investor’s buying price at this time, and if forced to sell, the loss is often larger. Investors can appropriately cover their positions and reduce costs, and wait for the market to recover before selling on rallies. The best time to cover a position is when the index is relatively low or has just reversed upwards. At this time, the potential for rising is huge, and the possibility of falling is the smallest, so it is safer to cover short positions. In addition, it should be noted that weak stocks will not be compensated, and super dark horses that have skyrocketed in the previous period will not be compensated.

  1. The lower edge of the box is weak

Whether it is artificially open high and flat, open flat or even low and flat, when the box shape fluctuates high and low, it is thrown at the top of the box and bought at the bottom of the box. However, once the support price of the lower edge of the box falls, you should polish your holdings without hesitation. If you can’t make a move at this moment, after the box falls, it may have a pullback effect, but the rebound still cannot pass the original box. Fate means weakness.