There are several forms of waveband application.
Generally, when encountering a stock's trend, the method of judgment is not unique. It can be used with technical indicators, technical trends, or market trends. When applied to individual stocks, I tend to use technical trends to determine the trend for a certain period of time. I define it as one of the three applications of wave segments. I will divide the trend of a particular stock into three segments for you.
[First segment trend, called expansion and decline wave.] As the name implies, there is expansion and decline. This space is reflected in the stability of trading volume, but the stock price will continue to decline without any warning. However, it is not completely without warning. There may be market purchasing power or business problems, etc. Different stocks experience different situations. The decline that occurs in this trend is the market environment's reduced value-for-money competition, resulting in trading volume with no significant difference, and the stock price declining, i.e. the fundamental situation. Generally, when encountering this type, two solutions are taken: one is to abandon, and the other is to wait and see the final trend. If it is a flat-lining behavior, it can also be abandoned.
[Second segment, space contraction decline trend.] This technical trend is actually a decline in stock price, but it is a good opportunity for actual intervention. Why is that? First of all, we all know that stocks have three simple periods: decline period, rise period, and consolidation period. At the same time, it is divided into various situations such as slowing down of decline trend, slowing down of offensive trend, failure of breakout, and strong breakout. We will briefly mention the more common slowing down of decline trend, which is one of the most commonly used technical trends. Generally, when the decline trend contracts and the trading volume remains unchanged, it can be basically determined to buy. Because in this case, the stock's declining force is greatly reduced, and the best way to build a position is to divide it into several steps in a ladder-like manner, so that the cost average can be adjusted according to the downward trend.
[Third Stage: The Most Important Place ~ Expansionary Uptrend.] The prerequisite for experiencing the first two stages is that the stock has a trend range that can be operated. Then it is very normal to achieve the profit between the spread. Generally, the volume will expand, and even on the day after reaching a peak, it is advisable to sell out. Conservative investors can also sell out at the profit point in the first stage position. The technical trend focus is on the positioning of the initial purchase, which is also the main definition of the purchase point ~ the second stage. The second stage is the key to judging whether to hold or sell a stock,
[First segment trend, called expansion and decline wave.] As the name implies, there is expansion and decline. This space is reflected in the stability of trading volume, but the stock price will continue to decline without any warning. However, it is not completely without warning. There may be market purchasing power or business problems, etc. Different stocks experience different situations. The decline that occurs in this trend is the market environment's reduced value-for-money competition, resulting in trading volume with no significant difference, and the stock price declining, i.e. the fundamental situation. Generally, when encountering this type, two solutions are taken: one is to abandon, and the other is to wait and see the final trend. If it is a flat-lining behavior, it can also be abandoned.
[Second segment, space contraction decline trend.] This technical trend is actually a decline in stock price, but it is a good opportunity for actual intervention. Why is that? First of all, we all know that stocks have three simple periods: decline period, rise period, and consolidation period. At the same time, it is divided into various situations such as slowing down of decline trend, slowing down of offensive trend, failure of breakout, and strong breakout. We will briefly mention the more common slowing down of decline trend, which is one of the most commonly used technical trends. Generally, when the decline trend contracts and the trading volume remains unchanged, it can be basically determined to buy. Because in this case, the stock's declining force is greatly reduced, and the best way to build a position is to divide it into several steps in a ladder-like manner, so that the cost average can be adjusted according to the downward trend.
[Third Stage: The Most Important Place ~ Expansionary Uptrend.] The prerequisite for experiencing the first two stages is that the stock has a trend range that can be operated. Then it is very normal to achieve the profit between the spread. Generally, the volume will expand, and even on the day after reaching a peak, it is advisable to sell out. Conservative investors can also sell out at the profit point in the first stage position. The technical trend focus is on the positioning of the initial purchase, which is also the main definition of the purchase point ~ the second stage. The second stage is the key to judging whether to hold or sell a stock,
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