Buying yin but not yang means that when buying stocks, don’t blindly chase high prices, but gradually build positions when individual stock prices are at a low value
Sell yin but not yang Selling positive means that you should be able to hold on to the stocks in your hands and not throw away your stocks due to a false signal in the market. You can refer to the MACD indicator to help you look at the midline
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Operation principle:
1. Short and medium-term moving average 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.
The generally prudent method of buying stocks is that the K-line is above the 20-day moving average, and trading below the 20-day moving average is generally not recommended. Dow Theory tells us that the 20-day line is a big wave, and the 5-day line is The daily K-line is a medium wave, and the daily K-line is a small wave. It can be used as an analogy. The K-line is like a ship, floating on the 20-line big wave. If it is below, it will capsize, indicating the beginning of the stock price decline.
The components of the K-line chart are drawn based on the opening price, highest price, lowest price and closing price of each analysis period. Taking the daily K-line as an example, first determine the opening and closing prices, and draw the part between them as a rectangular entity. If the closing price is higher than the opening price, the K line is called a positive line and is represented by a hollow entity. On the contrary, it is called a negative line and is represented by a black entity or a white entity.
Many software can use colored entities to represent the negative line and the positive line. In the domestic stock and futures markets, red is usually used to represent the positive line, and green represents the negative line. However, investors involved in European and American stock and foreign exchange markets should pay attention: in these markets, green is usually used to represent the positive line and red to represent the negative line, which is exactly the opposite of domestic customs. Use thinner lines to connect the highest and lowest prices to the real body respectively.
The line between the highest price and the entity is called the upper shadow line, and the line between the lowest price and the entity is called the lower shadow line. K-line chart patterns can be divided into reversal patterns, consolidation patterns, gaps and trend lines, etc. The post-K line chart was introduced to the stock market and futures market because of its delicate and unique marking method. The K-line chart drawing method in the stock market and futures market contains four data.