In the stock market, many novices may ask, what are band skills and band operation skills? Band operation refers to the investment mode in which investors buy stocks at low prices and sell stocks at high prices. The following are the band operation skills brought to you by Bian Xiao, hoping to help you!

What band operation skills are there?

Band operation is an operation method aiming at the characteristics of band operation in domestic stock market at present. Although band operation is not the most profitable way, the success rate is relatively high, and this flexible operation mode can also help investors effectively avoid market risks, preserve financial strength and cultivate market sense.

Investors all know this rule: after a wave of rising prices ends, there will inevitably be a wave of falling in the opposite direction to correct it. Similarly, after every wave of decline, there must be a wave of rebound in the opposite direction to correct it. This is a famous saying in the stock market: rising is the curse of falling. Falling is the source of rising. Since there is such a law, we can find the possibility of future rebound in the process of market decline.

Band speculation is easier than finding a dark horse. In every year's market, there are major peaks and valleys. The peak is an opportunity to sell, and the trough is an opportunity to buy, which is for the market. Individual stocks also have certain bands. We carefully studied some stocks, and then determined the value area of individual stocks. After the stock price is much higher than the value zone, the market will be under pressure to pull back, and then we will sell. When the stock price enters the undervalued area, buy at a low level and wait patiently. Using certain stock knowledge, this kind of operation will generally get greater benefits.

1. What is band operation?

Band operation, also known as timing operation, refers to the investment mode in which investors sell stocks when the price is high and buy stocks when the price is low. It is the best operation skill to get short-term gains when the market is in a volatile market. Moreover, this flexible operation mode can effectively avoid market risks, preserve financial strength and cultivate market sense.

Second, advantages and disadvantages of band operation

Advantages:

1, band operation can seize the main rising band, and the bull market will not be empty, which can effectively increase the principal profit.

2, band operation can avoid the main decline band, the bear market does not lock the position, so that the principal profit is less swallowed up by losses.

3. Band operation, whether judging the rising band or the falling band, has a high success rate and a high safety factor.

4. Band operation adapts to bull market and bear market, and adapts to bull stocks and bear stocks, which can maintain a certain profit.

Disadvantages:

Band operation has many advantages, but the main disadvantage is that it requires high technical analysis level and strong comprehensive analysis ability. Investors are required to have strong psychology and strict execution discipline.

In the concrete application of wave theory, it is often difficult to distinguish the market situation, and investors will find that several wave counting methods can be established at the same time. So it is necessary for investors to understand the characteristics of each wave.

1) the first wave

The beginning of the cycle is a part of building the bottom form, and the rise is usually the shortest market among the five waves. At this time, the buyer's strength is not strong, and the market continues to sell.

2) The second wave

The callback is often deep, almost eating up the increase of 1, which makes people mistakenly think that the bear market is not over yet. When this wave is close to the bottom, the market is reluctant to sell, the selling pressure is reduced, and the trading volume is reduced. The closing price of Wave 2 will not hit a new low, but it will stop falling above the bottom of Wave 1, often forming chart forms such as head, shoulder, double bottom and triple bottom. The retreat of wave 2 is always less than wave 1 amplitude 100%.

3) The Third Wave

This wave is often the largest and longest, and it will never be the shortest in the 5-wave structure. At this time, investors' confidence has recovered, the volume of transactions has risen sharply, and breakthrough signals often appear. The third wave always exceeds the end of the 1 wave.

4) The fourth wave

The shape is complex, and the structure is different from that of Wave 2, and there is often an oblique triangle trend, but its bottom will not be lower than the vertex of Wave 1. This is one of the core principles of Eliot's wave theory. 4 waves play a significant supporting role in the future bear market. Usually this round of bear market will not fall below the fourth wave formed by the previous bull market. It can be used to measure the farthest target of price decline, but there are exceptions.

5) The Fifth Wave

In the stock market, the rally is usually less than the third wave, and there are often failures. Compared with the third wave, the transaction volume is reduced and the volume can shrink. The 5th Wave, indicators often deviate.

6) A wave

In the first wave of adjustment, the time and space of decline are greater than the retracement in the rising push wave, and there is actually an early warning signal in The 5th Wave. Most people think that the rising market has not reversed, and it is only recognized when the A wave has a five-wave structure.

7)B wave

The transaction volume is not large, which is generally the escape wave of the old bulls, and it is also the second opportunity for the short market to establish new shorts. Because it is a rising market, it is easy to mistake it for an upward trend and become a bull trap. Many people are trapped here. This wave of market may hit the previous high point to form a double top, and may even briefly cross the previous high point before going down.

8)C wave

Destructive downward wave, with strong decline, large decline, long duration and overall decline. The appearance of wave C declared the real end of the upward trend. C wave falls below the bottom of A wave, forming a selling signal. A straight line (neckline) is used to connect the bottom of Wave 4 and Wave A, sometimes forming a head-shoulder top shape.

Five principles that must be grasped in band operation

1, grasp the rhythm and intervene on dips. Because the market is in the process of repeatedly bottoming out, the stock index is very unstable, and there will be panic selling at the slightest sign. It should be a good choice to intervene on dips.

2. Pay attention to rotation and select stocks. Through the observation of the market, we find that the pattern of plate rotation is often like waves in the market, which lasts for a long time. For example, from agricultural stocks to new energy and potash concept stocks, they all show this wave-like law. Therefore, it is a good way to get short-term benefits by choosing opportunities to intervene in some emerging concept stocks.

3, enough is enough, sell on rallies. The so-called band is the difference between the high price and the low price of a stock in a certain period of time. Whether it is a bull market or a bear market, the market will have such opportunities, but market opportunities are always provided to investors who are quick-thinking and correct in judgment, and to those who are good at grasping the band. When the market has not continuously released the upward trading volume, selling against the top is a more rational choice.

4. Observe trends and control positions. The biggest feature of band operation is that it cannot be operated by Man Cang. Before the market reverses, you can only be a guerrilla. The short-term funds of the balanced market can be controlled at around 30%, and can be increased to more than 50% when the market strengthens repeatedly. If the stock index turnover recently breaks through the top of the short-term box, which is 3000 points, you can continue to add positions.

5. Know yourself and yourself, and operate flexibly. Short-term investors pay attention to time-sharing K line and daily line; Mid-line investors pay attention to weekly K-line and monthly K-line, such as 60-day moving average; Long-term investors pay attention to the half-year line and the annual line. Short-term investors are characterized by paying attention to the word "fast", but long-term investors can do larger bands. Therefore, we should grasp the rhythm of band operation according to our own characteristics and the mid-term market trend.

Band operation principle

Band operation is an effective operation method according to the characteristics of band operation in stock market. Although band operation is not the most profitable way, it is always a way with high success rate. This flexible operation mode can also effectively avoid market risks, preserve financial strength and cultivate market sense. The essence of band operation is to use the fluctuation of stock price, throw high and suck low, and achieve the effect of compound interest and appreciation.

Band operation principle

1, only select the main trend upward.

2. The market is the weather vane of individual stocks.

3. Buy and hold only when the bottom is just started.

Three methods of band operation

1: Short-line operation

Short-term band operation refers to the band operation mode of holding shares within 2 weeks according to the short-term band operation law of stock price. According to the operation of the market, investors can hold shares 1 day, 1 week or 2 weeks. In ultra-short-term operation, they can even operate in a "T+0" way, buying and selling on the same day, or buying and selling on the same day.

Short-term band operation, investors only earn interest on the price difference in the short-term band of the stock price, and don't care about the long-term band of the stock price.

The characteristics of short-term band operation require investors to have strong technical analysis ability, adaptability and strong execution ability. At the same time, investors are also required to have more time to track market changes at any time.

Case:

Figure 1-3 is the short-term band analysis diagram of the 60-minute K-line combined bollinger band. As can be observed from the figure, the stock price has been running in the form of bands in the Brin channel. When the stock price is adjusted back from the band high point A to the low point B, an important multi-head hammer line appears on the K-line, and the stock price is supported by the lower rail of the Bollinger Band. When the second Dayang line appears, it shows that the upward reversal market is established, and you can buy it in short-term band operation at this time.

After building the bottom of the short-term band, the stock price continues to rise and enters the next band. When the stock price breaks through the previous band high point A, it moves up along the middle and upper rail of the Bollinger Band. Then the stock price broke through the upper rail, and at the same time, a K-line shape with a top reversal signal appeared on the K-line, and then the stock price returned to the lower part of the upper rail of the Bollinger Band. According to the bollinger band theory, the stock price breaks through the upper rail line and returns to the lower part of the upper rail line, indicating that the short-term market rise is over. At this time, short-term band operation needs to sell stocks. Buy stocks at point B and throw away chips at point C, thus completing a short-term band operation.

2. The midline fluctuation operation

Mid-line band operation is an operation method of buying and selling bands according to the characteristics of mid-term fluctuation of stock prices, and the investment time is between 2 weeks and 3 months.

Mid-line band operation is a band operation method based on technical analysis, taking into account the fundamental situation of listed companies and investing according to the fluctuation law of long-term market operation. For the mid-line band operation, investors must have some confidence in the mid-term trend and the broader market of listed companies, buy when the stock price is at the bottom of the mid-term, ignore the short-term price fluctuation, and sell the stock when the top of the mid-term comes, so as to obtain a large spread profit at one time.

Case:

Figure 1-4 is the weekly K-line combined moving average analysis chart. As can be seen from the running track of the moving average, the long-term running trend of the stock is based on the 60-week moving average and runs in the upward band. When the stock price completes a round of intermediate rise, it is supported by the 60-week moving average when it is adjusted back to point A, and the K-line shows a long-term engulfing pattern, and the stock price breaks through the 10 moving average upward.

According to these signals, it can be considered that the mid-term upward trend of the next band of the market is about to begin, and the buying point of mid-term band investment is coming soon. After that, the market rose for two months and was under pressure at the integer mark of 20.00 yuan. Then the stock price falls below the 10 weekly moving average, and it can be sold in the mid-line band at this time. Later, the market rebounded to point C, and a bearish star appeared on the K-line. After that, a K line fell below the 10 weekly moving average again. At this time, all investors in the mid-line band have to close their positions. At this point, the mid-line band operation was completed, and the profit reached about 40% in two months.

3: Medium and long line band operation

There is no strict definition of long-term or long-term investment time. It is generally believed that long-term investors will not sell their stocks in the short term. In general, medium and long-term band operation refers to the band operation method that takes more than 3 months from buying to selling.

Long-term investment is often not classified as band operation. However, if its operation mode is to determine the buying point and selling point of long-term investment according to the long-term fluctuation trend of stock price, and the holding time is around 1 year, it can also be called long-term band operation. Long-term band operation is slightly different from long-term investment. Long-term investors hold a stock for several years or even more than ten years. Long-term band operation does not need to be held for such a long time, but the timing of selling and buying is determined according to the long-term trend of the market.

For band operation, medium and long-term investment is more practical. Therefore, in the future, we will focus on the medium and long-term band operation, and at the same time explain the operation skills of short-term band and mid-line band.

The medium and long-term band operation pays attention to the general trend and the basic quality of individual stocks, and investors are also optimistic about the future development of listed companies. In technical analysis, investors mainly focus on medium-and long-term analysis indicators, such as daily K-line and weekly K-line in the K-line chart, while the moving average takes MA60, semi-annual line and annual line as the main analysis objects. Using these medium and long-term analysis indicators, we can determine the medium and long-term trend of individual stocks in order to buy in the low-priced area of the band. When holding shares, we don't care about short-term fluctuations in the market. As long as the long-term trend is upward, we will hold shares all the way until the long-term trend changes.

Case:

Figure 1-5 is the trend analysis chart of weekly K-line combination MACD and moving average. In the case explained earlier, the figure 1-4 is analyzed for the purpose of Cygnet A mid-line band operation. It can be seen from Figure 1-5 that the middle callback of the third wave should not be chosen as the buying opportunity in the medium and long-term band operation, but should be bought between the second wave and the third wave of the main rising wave. This buying skill will be explained in detail when introducing wave theory later.

For medium and long-term band operation, it is best to take weekly K line and daily K line as the main analysis cycle. It is easy to observe the development trend of the market with weekly K-line, while daily K-line can help investors find better trading points.

Although every successful investor has different investment methods, there is no doubt that all successful investors have followed some market rules. Many people have made achievements in the stock market, but they are on the run, eating the last meal but not the next. They don't know where the future profits come from, how many stock market rules they have mastered, and how much wealth they have. I also hope that investors will explore the law first, then practice, pursue wisdom first, and then pursue wealth.

The three necessary and sufficient conditions for a successful trader are the combination of technology, principle and humanity, which are indispensable and inseparable. The principle without technology is an empty principle, the technology without principle is blind technology, and the transaction with insufficient human nature cultivation will be a failed transaction. In the final analysis, the failure of trading is a problem of human nature. Therefore, the successful condensation of mature human nature, complete principles and rigorous technology can realize the true meaning of being small and broad!