The application of indicator science is a flexible means of operation, not an immutable fixed principle. Investors with different personalities have different operating concepts, and different market environments are suitable for different operating modes. Assuming that A uses the concept of eliminating the weak and selecting the strong to operate stocks, then when the technical indicators of the XX stock reach the overbought level, the person A may determine that the XX stock is a strong stock; when the technical indicators of the XX stock reach the oversold level At this time, A may decide that XX stock is a weak stock. Therefore, A chooses to buy stocks whose technical indicators are higher than the overbought level, because this type of stock is defined by A as a strong stock, and exits the market when the technical indicators fall below the overbought level again, because this stock The strong state has disappeared.

Although X's stock selection model is just a personal opinion, we cannot use the standard of right and wrong to measure it. It all depends on personal operating methods and concepts. Perhaps in another sense, the operating method adopted by A can, for him personally, solve the problem of high-level or low-level passivation of overbought and oversold indicators in a timely manner. Because, when the indicator is passivated above the overbought level, it means that the stock continues to be in a strong state; when the indicator is passivated below the oversold level, it means that the stock continues to be in a weak state, so A will never generate an indicator. Passivate the trouble of being unable to study and judge.

In the early days, the author selected stocks with deep stock price declines. In addition to considering their resilience, I also looked forward to a larger rebound in stock prices in the future. Of course, stocks that have fallen significantly can easily cause the indicator to drop to an oversold level. According to the buying and selling rules of traditional indicators, a reasonable and safe rebound zone should have been reached. However, in order to buy a stock that has fallen significantly, it may happen that the stock price falls more and more as you buy, while the indicators continue to passivate in the low-level oversold zone. As a result, investors will have to continue to spread their costs downwards. If the stock price fails to rebound and rise, once the funds are exhausted, investors will not know what to do next. Based on the author's experience, when I no longer have any extra funds to spread the bargain, I can only bite the bullet and let fate dictate. At this time, I feel like I am being held in a prison waiting for execution. The prisoner was full of helplessness. If investors buy stocks through overdraft, they may actually be put on the guillotine in the end, and their funds will be cut off.

In fact, buying a stock with oversold indicators is equivalent to buying a stock that is currently declining, which means buying a weak stock. Therefore, the author later changed to a stock selection model of eliminating the weak and selecting the strong, specifically buying stocks that are rising. stocks and sell stocks that are in decline. Perhaps readers may question that the risk of stocks that have risen a lot is relatively higher. This operating mode seems unreasonable, but it cannot be denied that this is simply a deviation caused by different operating concepts or habits.

In the field of stock analysis, there is a popular saying: The strong will always be strong, and the weak will always be weak. This sentence echoes the principle of eliminating the weak and choosing the strong. However, according to the traditional view of overbought and oversold, investors will choose to buy oversold stocks and sell overbought stocks. In other words, investors sell strong stocks that are rising and buy weak stocks that are falling. In this way, this operating mode violates the principle of eliminating the weak and selecting the strong. In fact, between the two operating modes, there is no absolute question of which one is right and which is wrong. It completely depends on the individual investor's mentality, experience, and personality.