What Are The Skills Of W Stock Picking?

Double bottom form, also known as "W bottom", is an important form of morphology. Its appearance is like the English letter "W". The bottom form of W belongs to a medium bottom form. It usually occurs at the end of the declines in the band price band and does not appear in the middle of the market trend.

Its market characteristics are mainly reflected in: Price of stock After a long decline, there was a reasonable rebound and a rebound. However, due to the deep fall in the previous period, there was not much rebound, resulting in a second fall. Subsequently, when the share price fell to the previous low point, the volume of turnover significantly shrank. With the gradual enlargement of trading volume, the stock price rose again, and broke through the previous high point, forming a breakthrough. After breaking through the stock price, there is often a return. The share price dropped to a height near the first rally and then rose.

In theory, the "W bottom" can clearly show the whole process of the power change of the two sides: after the stock price has fallen for a long time, the stockholders are reluctant to sell and the volume is reduced. The addition of the copied chassis and the short back supplement has led to a more powerful rebound in the stock price. When the stock price rebounded to a certain height, the stock market and the short-term profit taking gush, and the stock price fell again. However, this decline in volume decreased significantly, indicating that the initiative to reduce sales, and missed the last market. Investment Those who buy the shares will not be able to fall through the last low position. As the stock price picks up, more and more investors join the buyer camp, and finally the stock price has broken through the last high point with the huge volume, and the rising trend has been established.

There are two lows and two rises in the bottom of the W, and a horizontal necking pressure can be drawn from the first high point. When the share price goes upwards again, it must be accompanied by a big break, and the W bottom will be formally established. If the breakthrough is not successful, the stock price should continue to be arranged horizontally. When the share price breaks through the neckline, the neckline pressure changes to the neckline supporting line, the stock price will appear back at this time, temporarily back to the neck line, the end of the return, the stock price starts the band to rise.

Generally speaking, W bottom The second low points of the form are better than the first low points, which can create an atmosphere of breaking up and let some copy chassis go out, thus forming a relatively concentrated base of chips, so as to facilitate the improvement of the main market.