Introduction To Stock: Look At Market Skills

Most retail investors understand the trend of stock prices in a day's trading.

So how do we get the information we need from these flashing, glittering and changing numbers?

First look at it.

Today's opening is the price that investors who participate in the paction come to a consensus after a night's consideration, based on the closing price before reference.

If the opening price is lower than the previous closing price, and the low opening, the empty side has the advantage, the share price will go down all the way, even if there is a rebound, the large sale and the closing price at the opening price will be the resistance point of the counter attack.

If the opening price is higher than the previous closing price and the higher price is higher, it means that many parties take the advantage. When the share price is rising and falling back to the opening price, the bulk buying and the closing price will play a supporting role in the stock price.

The highest price and the lowest price on the stock market can also play a supporting or resistance role in the stock price trend.

After the stock market hit a high point, it fell back, indicating that there was a clear selling backlog at the high point. When the stock value fell back and rose to the high point again, it would encounter a sell-off selling here.

With this principle, the lowest point of stock price formation is the sign of multi dominance after the fight between the two sides. It is also the last support for many parties to resist the air side attack.

Once the stock price falls below the previous low point, there will be more empty forces to join the sell-off, resulting in a sharp downward trend in stock prices. As a result of the rapid fall, a large number of unsold stocks deposited at the low point will become the resistance position of many counterparties.

In addition, integer position and moving average position can be resistance or support position.

From the above analysis, we can see that the resistance position and the supporting position are a pair of conflicting contradictions. Grasping the rules of their conversion will help to judge the price of the paction, determine the support to buy in the low price area, and identify resistance so as to strive to sell at a high price.

When the stock price is close to the resistance level or support level, it is necessary to judge whether the parties have the ability to break through the resistance level or defend the supporting position. At this point, we must combine the buying volume, the selling volume, the current hand and the turnover volume to judge, because only changes in volume can truly reflect the rise and fall of the main intention and the popularity of the market.

When the stocks you are concerned are in the relatively low price area and the stock price rises to the resistance level, we should pay close attention to the turnover volume.

If the selling volume is far greater than the buying volume, and the big hand now pays the price at the selling price, the selling volume will be eaten in a mouthful, so that the volume will suddenly enlarge. This means that the parties will start to attack the resistance level. If the volume can continue to be large enough, the stock price will accumulate, and the share price will rise. At this time, we should follow up in time.

Conversely, the volume can not continue to enlarge, it shows that many parties can not break through the resistance position, the stock price will fall back, at this time should sell shares.

When the stock price is larger than the amount of purchase in the relatively high price area, and the large hand payment will be exhausted, the volume will break through, but the stock price can not rise rapidly after breaking through the resistance, and the price increases or the price increases slightly. This shows that the main force in the resistance position through the "opposite to" approach, the volume of a false breakthrough, in order to attract retail investors to catch up, the opportunity to distribute, at this time should sell shares, leaving the field to wait and see.

Based on the above analysis, we can see that the careful study of the relationship between the market price and price, price and quantity, and quantity and quantity can provide a necessary and accurate reference for judging the trend of stock price and the timing of buying and selling.