It is everyone's wish to get high profits quickly, and only the V-shaped bottom of technical analysis conforms to this situation. V-shaped bottom inversion appears in the low area after deep decline. It refers to the reverse upward trend of continuous daily limit after a wave of rapid decline in a short period of time, during which the volume of transactions is greatly released. This is an extremely urgent reversal form, and its appearance is related to the main hype of its hot topics, or to the release of major positive news of individual stocks. But for whatever reason, huge buying accelerated and individual stocks continued to fall. This trend appears in the low area after a long-term decline. This is a sign of a complete change in the comparison of long and short forces, indicating that the reversal of the trend is unfolding. In the firm operation, we should buy stocks and enter the market.
For the V-shaped bottom form, because of its fast reversal and fast upward movement, it is also a good choice to buy stocks at the callback low point after the formal formation of the V-shaped bottom if you can't buy stocks at the first time in the firm operation in combination with the previous cumulative decline of individual stocks and the current hot topics. Generally speaking, after the V-shaped bottom form, due to the heavy profit selling pressure in the short term, a deep callback is inevitable. However, due to the active support of the main force and the changes in the comparison of long and short forces, the callback will generally not exceed half of the rapid increase in the previous period. This is also worthy of our attention, which can help us grasp the opportunity to buy stocks at a low point after the callback.
V-shaped reversal is a common and strong reversal form in actual combat, which often appears when the market fluctuates violently, and there is only a low point or a high point at the bottom or top of the price;
Then it changed the original running trend, and the stock price changed sharply in the opposite direction. V-shaped inversion is common in the K-line combination of investment varieties.
In the form of tactics, the V-shaped bottom is the most dramatic, and it can be said that whether it is extremely popular or not, it is the extremes meet.
When the stock price fell the most violently and people were most frightened, sudden factors reversed the downward trend of the plunge, and the stock price changed in a Jedi counterattack, and the plunge turned into a big one.
Whether it is the small V-shaped sharp bottom in the oversold rebound or the V-shaped reversal in the middle trend reversal, it is both desirable and expected.
Because once the V-shaped reversal pattern appears, the performance of individual stocks is usually very amazing, and the strength of the rise is relatively large, and it is a rapid rise in the short term. Therefore, grasping the trend of V-shaped bottom is the fastest way to increase the value of the account.
operative technique
1, some time before the V-shaped bottom appeared, the market had a very obvious trend.
Moreover, in the process of V-shaped bottom fluctuation, it will not be adjusted basically, and there will often be a gap pattern, which is often interpreted by investors as the market is out of control. This pattern usually appears when there is significant positive news in the foreign exchange market.
2. After the appearance of V-shaped bottom, it generally means that the foreign exchange market will usher in a round of inflation in the later period. If investors misjudge the direction of operation at this time, they must seize the time to flee, and stop loss and take profit should be set properly in specific operations.
3. Under normal circumstances, the V-shaped bottom in the fluctuation trend of foreign exchange market is generally not very firm, and false V-shaped bottom forms often appear. When operating, you must confirm it repeatedly and trade carefully.
"V-shape" can appear at any stage of the price, but as a "reverse" form, it rarely appears in the real "outsole"; However, the inverted V is not only explosive, but also sustainable. Especially in the big cycle, for example, the historical peaks of Shanghai Composite Index 6 124 and 5 178 are two "inverted V-shaped" on the monthly K-line.
Case one,
In the past, there was a trend in the Shanghai Composite Index. In the process of the hourly index from 998 to 6 124, the position in the figure has risen to about 4300;
Therefore, from the perspective of the main trend, it is far-fetched to call it a "V-shaped" reversal, which should only be an adjustment "reversal" in the process of rising trend.
As can be seen from the above figure, the "V" of the V is basically flat, so although the short-term momentum is fierce, it is not lasting, and it is left and right.
Case 2,
After the inverted V-shape in the above picture, it is a positive V-shape. Compared with V-shape, inverted V-shape is not only more common, but also more intense and lasting.
Case 3,
In the above picture, a "V-shape" is formed, but the "inversion" itself is a small entity K line with a long downward shadow line, which has the property of stopping falling;
At the same time, the combination of three K-lines also belongs to "three K-lines". Therefore, although "V" is difficult to predict, its lowest price (high price) K line is often constructed separately.
Morphology has different trend characteristics.
(1) The V-shaped bottom has no definite measured increase, and generally returns to the original starting area.
(2) The V-shaped base must have obvious large intersection points at the turning point, otherwise the shape cannot be established.
(3) On the day when the V-shaped bottom is reversed, the daily K-line often forms a cross star with a long shadow line or a big sun line.
(4) The rapid rise of the V-shaped bottom is often unexpected. Few investors can buy at the lowest point.
Bottom-hunting entry time
In the grasp of the timing of bargain hunting, many people expect to grab the plate after the bottom appears, or after the good news comes out.
But if everyone thinks so and does so, it will become a block at the same point in the market price, so there is the possibility that the main force will be locked in a high position.
In fact, when the downward trend will be exhausted, the main force will copy the "double dip" and would rather leave some of the lowest chips to others to earn. In this way, you can always win. This is called "chasing up in time".
Some technical indicators can accurately grasp the bottom of individual stocks, taking KDJ as an example.
The stock price of individual stocks continues to fall, the KD value is below 20, the K line crosses the D line, and the moving averages are best arranged in short positions. There is a shadow line on the daily K-line. The longer the shadow line, the better, and the stocks begin to be moderately heavy. This is an obvious bottom signal, and you can copy the bottom.
Tips for stock selection:
1. Pick stocks against the trend, switch to stocks, and pick stocks from the last two days of the market decline to the daily limit of the 5-day moving average. At this time, the daily limit has the main control intention. At this time, there are people who want chips, and there are also people who want to reduce their positions during the daily limit. Choose the ticket you want to chip in and put it in the selected stocks for observation.
2. Choose a variety with concentrated potato chips and thorough dishwashing.
A stock, whether at the bottom or in the upward trend, can shrink to the limit, so it is easy to rise rapidly, and the concentration of chips is conducive to rapid rise. If the chips are too scattered, the price fluctuation will be reduced accordingly.
It depends on the quantity.
One is to look at the pile. The so-called quantity first, not only quantity and energy, but also quantity and sustainability. If the turnover continues to rise, then the inflow of funds will inevitably promote the rise of the market outlook.
4. Choose stocks and avoid bland varieties.
Generally speaking, the offensive strategy in the bull market is intended to get more and faster benefits; In the adjustment, defense strategy is the main strategy, which is intended to reduce risks.