A trader's heartfelt monologue: Why do you enter the market with a full position when the "MACD bottom divergence"

"Bull markets cover stocks, bear markets cover money" This is a famous saying circulated in the stock market, see It seems simple, but in fact it tells the truth of investment! The fluctuations of the stock market follow the pattern of alternating bull and bear markets. Eight out of ten stocks in a bull market will rise. At this time, the more frequent stock exchanges, the less likely you will be able to enjoy the large-scale rise; while most of the stocks in a bear market will fall, and even if you explore investment opportunities, it will not be too much. If there are many, the best choice is to hold the currency and wait and see, keeping your money bag tight!

1. Principles of stock selection

(1) Choose varieties with concentrated chips and thorough washing. Whether a stock is at the bottom or a correction in an upward trend, if its volume shrinks to the limit, it is easy to rise quickly. Only concentrated chips are conducive to rapid rise. If the chips are too dispersed, the range of price increases and decreases will be correspondingly reduced.

(2) If you want to choose stocks that are active, avoid sluggish stocks. Generally speaking, in the bull market, the offensive strategy is mainly used to obtain more and faster profits; in the adjustment period, the defensive strategy is mainly used to reduce risks. For example, the GEM has been far stronger than the main board recently, and the rapid rotation of sectors is also a major feature of the bull market. It is necessary to choose varieties that conform to the current hot sectors.

(3) Pay attention to the timing of intervention. It is also a strong stock, but the speed is different in different stages of rise. In the banker's accumulation stage, intervention needs to be safe, but the rising speed is very slow and requires more time costs. The smartest way is to wait until the main force has finished absorbing funds and fully washing the market, and then intervene when the volume starts to increase. This is usually called the fattest period.

(4) Look for varieties with good expectations. If there are substantive or long-term themes or concepts, positive restructuring or performance expectations, etc., then such individual stocks will have reasons to continue to rise.

Second, practical graphic stock selection skills:

1. Three-line golden cross

The market significance of the bottom of the three-line golden cross is: the popularity of the stock price after a long-term decline Scattered, when there is no way to fall, it begins to fluctuate at the bottom. As the main players gradually build positions, the stock price finally begins to rise. The initial rise in the stock price may be extremely slow, or it may be latent and accumulated, but no matter what, it will eventually cause the bottom of the stock price to rise and the upward trend to rise. When trading volume continues to increase and push the stock price upward, the 5-day and 10-day moving averages, the 5-day and 10-day moving average lines and MACD will naturally undergo a golden cross, which is a strong bottom signal. As the stock price rises, investors who bought at the bottom begin to make profits, and this strong demonstration effect of making money will attract more OTC funds to intervene, thus erupting into a majestic bull market.

Operation principle:

1. The short and medium-term moving average is golden cross. This golden cross indicates that the average holding cost of the market has developed in a direction that is beneficial to the bulls. As the profit-making effect of the bulls continues to expand, more OTC funds will be attracted to the market.

2. Golden cross of short- and medium-term average line. This golden cross indicates that during the decline, the volume energy first shrank to the extreme, and then new off-market funds continued to enter the market. The volume energy began to increase moderately, and market sentiment was further restored, thus making the volume-price coordination more and more ideal. It is of great significance for individual stocks to bottom out and rebound. Historical experience tells us that unlimited rise is difficult to last for a long time, and the determination of average volume and golden cross can effectively improve the chance of winning.

3. MACD’s golden cross. Regardless of whether DIF or MACD is above or below the 0 axis, when DIF breaks through MACD upwards, it is a better buying point in the short and medium term. However, the former is a better buying point, while the latter is only a temporary covering of short positions. rebound.

2. Excessive volume

Graphic characteristics of excessive volume:

1. The stock price releases huge trading volume when it rushes through the previous head. This kind of Trading volume is sometimes several times that of previous trading days.

2. Sometimes it is a single huge positive line when the volume is high, and sometimes it is several positive lines with a moderate increase in volume. In short, there is the cooperation of trading volume when it rushes through the front head, and generally speaking, multiple positive lines with heavy volume The effect of Yang Xian is better than that of a single Yang Xian.

3. After a heavy-volume breakthrough, the short- and medium-term moving averages must be arranged in a long position.

The market significance of excessive volume:

1. If the stock price wants to reach a new high, it must break through the previous head. There are two common forms: excessive volume and excessive volume.

2. Excessive volume refers to the fact that the dealer has not completed building a position and most of the chips have not been locked. The operation of placing a huge amount to exceed the previous head can forcefully open a position.

3. The front head of excessive volume is the bottom of the current rising wave.

4. After excessive volume, the previous head was collapsed, and the original resistance line became a support line for future stock prices.

3. Inclined sky buying method

This form consists of two stages. The first stage is a stage of smooth rise at a small angle, which requires the stock price to rise along a line. The diagonal lines at a small angle are spread out in a straight line. The flatter the better, the flatter it proves that the main force has stronger control over the stock price, and the probability of a main rise in the market is greater; the starting point of the main rise is usually the heavy volume of Changyang or Changyang. At the beginning of the daily limit, the upward angle changes suddenly, usually by more than 50%, or several times more, which is the fastest stage to achieve profits.

The schematic diagram is as follows:

The inclined ladder can be said to be the in-depth development of the wave-by-wave rising buying method. It is a form that appears very frequently. This form is a stronger arrangement than the platform arrangement. Way. The trend of individual stocks with this form shows a sharp and rapid upward trend. Investors should pay more attention to this form. Once the stock price breaks through the previous high in Changyang and the daily limit, they should quickly increase the price to buy or buy at the daily limit price before the daily limit. They will definitely make huge profits.

Case: Double Money Shares (600623)

In the picture below, Double Money Shares began to fluctuate upward around the 30-day line, then stood on the 30-day line, and occasionally broke through the 30-day line It gradually transitioned to occasionally touching the 30-day moving average, and finally transitioned to stand on the 20-day moving average. Before finally taking off, it followed the 10-day moving average, and finally simply stepped on the 5-day moving average to start a large-angle surge. The whole trend was spectacular. It's most spectacular and as powerful as a rainbow. On August 12, 2009, the stock bucked the market trend and surged in volume, and then continued to rise above the daily limit. In just 22 trading days, the stock tripled. This is the classic form of slanting clouds rising into the sky. This form is an extremely strong rising form. If you buy at the breakthrough point, you can make quick and stable profits.

4. MACD bottom divergence from the buying point

In the process of the price falling to the bottom, the stock price reaches a new low, but the MACD indicator does not fall but rises. This is a bottom divergence.

Top and bottom divergences can occur in almost all technical analysis indicators, and MACD is no exception. When the stock price is falling, if the MACD indicator does not fall but breaks upward, it is a bottom divergence. When the indicator deviates from the bottom, it means that the bottom of the stock price is about to form. At this time, traders should be prepared to buy stocks. Of course, even if a bottom divergence occurs, traders should wait until the bottom of the stock price is actually formed before buying. Because many times after a divergence occurs at the bottom, the stock price will continue to fall.

As shown in the figure, Xinhualian (000620) was in a downward trend, and its stock price fell from 7.73 yuan to a minimum of 5.13 yuan, a drop of up to 33%. Looking at the MACD indicator again, with each low point in the stock price, the MACD continues to rise. Eventually, the bottom of the stock price continues to move downwards while the MACD continues to move upward. At this time, Xinhualian's stock price and the MACD indicator form a serious divergence. In the early stage of the divergence, it only means that the bottom is forming. As for when the real bottom will be formed, and how much the stock price will fall before the bottom is formed, it is unknown. Traders are best to buy stocks when the stock price starts to rise and the MACD indicator rises to the 0 axis and forms a golden cross. This may not necessarily be the best buying point, but it must be the safest buying price.

The author’s message: The stock market is by no means gambling and depends on luck. We must constantly summarize and learn. Only by deeply understanding the market can we survive in the long term. If you want to survive in the stock market where the weak and the strong prey on predators, you can't do it without a set of profit methods and skills and the discipline of self-protection. Investors need to solve troublesome trends, funds, and buying and selling points, and identify market maker trends and main capital flows. After all, the money invested in stock trading is their own hard-earned money. Learn more trading skills to avoid losing money in A-shares.