Band Operation: Does The Stock Market Really Usher In New Opportunities?

Band operation is an effective operation method for the stock market to operate in a wave band. Although band operation is not the most profitable way, it is always a relatively high success rate.

This flexible and flexible way of operation can also effectively evade market risks, preserve financial strength and foster market sentiment.

Band speculation is more important than finding a dark horse. Every year there are main peaks and main valleys in the market. The summit is the opportunity to sell; the trough is the opportunity to buy.

It is easy to grasp the band speculation, which is for the market.

Many stocks have a certain band. We will carefully study some stocks and determine the value area of stocks. After a long distance from the value area, the market will have the pressure of the callback. At this time, we will sell again. When the stock price goes into the undervalued area, it will buy at low position, hold patiently and wait for the opportunity, so that we will gain more returns.

Stock picking skills.

More suitable for band operation of stocks, in the bottom stage there will be an unnatural phenomenon of volume, effective amplification of the amount of energy shows that there are main funds in active intervention.

Because retail investors will not rush to build positions under the double blow of bad fundamentals and bad technology. Therefore, the volume at this time shows that some of the panic plates are running away regardless of costs.

Keeping it down doesn't prove anything.

We are building a warehouse by chance.

Therefore, we can infer that the stock has a very short opportunity in the future market.

Buying skills: buying at trough.

Trough is the biggest fall in the fluctuation of stock prices, and the bottoming market of the region will naturally form a central area. Investors can choose to buy in the trough where the market is down and away from the bottom area.

Technically, the trough generally appears in the following positions: the lower trajectory of the BOLL brin line; the downward track supporting line of the trend channel; the marginal line of the intensive trading area; the stop loss location made by the investors, the location of the bottom of the box and so on.

Selling skills: CREST refers to the largest gain area in the fluctuation of stock prices.

From a technical point of view, crest peaks generally appear in the following positions: the upper trajectory of the BOLL brin line; the upper track trend line of the trend channel; the marginal line of the closing area of the trading area; the pre established profit margin for investors; the location of the top of the box.

Stock holding skills: depending on wavelength.

Wavelength refers to the time required for the stock price to complete a round band market.

The long debate between the long and short lines in the stock market has existed for a long time. In fact, one-sided use of long term or short term investment is a way of investment based on subjective will and decoupling from reality.

The length of investment should be based on objective facts. When the market wavelength is longer, the long line should be used; when the market wavelength is short, short lines should be used; it is necessary to adapt itself to the market rather than allow the market to adapt itself.

On the whole, the market is always in the operation of the band. Investors must grasp the operation rules of the band, make full use of the relative vertex of the rise, seize the opportunity to sell, make full use of the fundamentals to buy in the market pessimism, and do several such operations every year, which will achieve good results.

In the use of band operation, we must formulate and implement the plan and plan for band operation according to the operation characteristics of the band market. In particular, we must grasp the six elements in the band space: wave axis, wave potential, wave trough, wave peak, wavelength and amplitude.

Wave axis refers to the relatively balanced position in the band market.

Wave axis is the core element of the operation of the band. The central axis index AXES is the yardstick. When the price is below the axis AXES, investors can pay close attention to it. When the price is close to the trough area of the band market, it can be bought by machine. When the stock price is above the axis AXES, the investor must wait and see, and sell the shares when the price is close to the peak area of the band market.

Refers to the overall trend and direction of the band market.

In most cases, the trend of the band market is to maintain a certain slope up or down, and the absolute level of band market is relatively rare.

When the price level is running and the volatility is very small, it is often the precursor of the market to break through.

The key to the operation of the band is to pay attention to the trend. According to the different operation directions of the band market, including different operating slopes, different band operation methods are adopted respectively. For example, when the band market is running upwards, the investors must carry out the band operation without losing the chips.

The trough is the largest decline area in the fluctuation of stock prices.

The wave peak refers to the largest gain area in the fluctuation of stock price.

The wave valley and wave crest belong to the trade in and out of the region in the band operation.

1. Box top and bottom position.

2. The upper and lower trajectories of the BOLL brin line.

3. Trend track upper track trend line and lower rail support line;

4, the edge line of the intensive area.

5, investors pre established the winning position or stop loss;

6.

The position of the mean deviation value between axes.

Wavelength refers to the time required for the stock price to complete a round band market.

The long debate between the long and short lines in the stock market has existed for a long time. In fact, one-sided use of long term or short term investment is a way of investment based on subjective will and decoupling from reality.

The length of the investment cycle should be based on objective facts, but the market trend is the first to look forward. When the market trend fluctuation cycle is long, we should use the long line; when the market trend fluctuation period is short, we should use the short line; investors should adapt themselves to the market, rather than let the market adapt themselves.

Volatility refers to the maximum distance that a stock price deviates from its equilibrium position during its vibration.

Due to the restriction of paction cost factors, band operation must have a certain profit margin before it can be carried out. If the fluctuation of stock price is too small, it is not suitable for investors to use band operation.

Although stamp duty and commission have declined in recent years, the paction cost of most investors will not exceed 1%. However, considering the normal error in practical operation and the fluctuation of stock price must reach 3% to 5%, the best environment for band operation is.

Investors must take these factors into consideration when formulating the band operation plan. Specifically, investors need to do the following:

1, determine the investment orientation according to the wave axis.

2, determine the specific operation mode based on wave potential.

3, decide the buying and selling timing according to the trough and the wave peak.

4. Determine the degree of intervention based on wave amplitude.

5. Determine operation cycle based on wavelength.

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