The sideways trading of stocks on the same day is a state that many people don't like, and everyone likes to see stocks rise. In fact, sometimes the stock sideways is also a signal. The following is a sideways stock compiled by Bian Xiao, for reference only, hoping to help everyone.
What does the stock always show sideways?
High sideways: This sideways is that after the stock price rises for a period of time, the upward trend stagnates, the stock price fluctuates, the energy of many parties is exhausted, the stock price is high, and the upside space is limited. Dealers are gradually shipping at the head. Once the main force retreats, the stock price will break through in one fell swoop. This consolidation generally occurs in the form of rectangular and circular tops.
Low sideways: this sideways refers to the stock price hovering at the bottom after a period of decline. In addition, with the emergence of Lido, popularity gradually gathered, and market funds did not withdraw. As long as the stock price no longer falls, they will enter the market one after another, and the main bookmakers will continue to absorb cheap chips in the market, and the floating chips will decrease day by day, reducing the pressure on the file. Many parties are ready for this. When this happens, the plate will break upward. This consolidation will generally appear in the form of rectangular and circular bottoms.
The sideways consolidation market is formed by the following three situations:
1, the sideways consolidation formed by the falling market.
2. Horizontal arrangement formed by converging triangles.
3. The sideways consolidation formed by the rising market.
Sideways not only appear at the head or bottom, but also on the way up or down. According to the sideways in different stages of stock price movement, we can divide it into four situations: sideways when rising, sideways when falling, sideways at high position and sideways at low position.
Upward consolidation: this consolidation is that the stock price rises rapidly for a period of time, then takes a break and then goes up. The corresponding rise in the early stage is often a rapid rise after weakness. Judging from the trading volume, the price increase has increased. In the consolidation stage, the volume of transactions has not shrunk. Although profit-taking has been thrown out, it is not strong enough to repel many parties. This consolidation generally appears in the form of wedge-shaped and flag-shaped finishing.
Consolidation in decline: this consolidation is that the stock price stabilizes slightly after a period of decline, rebounds slightly, and then turns around again. The corresponding early decline was hit by bad news, and consolidation was just an empty strategy for rest. The share price rebounded slightly, but it could not withstand the air attack, and the share price fell again. Judging from the volume of transactions, the price decline has increased.
High sideways: This sideways is that after the stock price rises for a period of time, the upward trend stagnates, the stock price fluctuates, the energy of many parties is exhausted, the stock price is high, and the upside space is limited. Dealers are gradually shipping at the head. Once the main force retreats, the stock price will break through in one fell swoop. This consolidation generally occurs in the form of rectangular and circular tops.
Low sideways: this sideways refers to the stock price hovering at the bottom after a period of decline. In addition, with the emergence of Lido, popularity gradually gathered, and market funds did not withdraw. As long as the stock price no longer falls, they will enter the market one after another, and the main bookmakers will continue to absorb cheap chips in the market, and the floating chips will decrease day by day, reducing the pressure on the file. Many parties are ready for this. When this happens, the plate will break upward. This consolidation will generally appear in the form of a rectangle and an arc bottom.
What does it mean for stocks to be sideways for two years?
Lateral consolidation is often a prelude to change, especially after a certain decline in stock prices, which is easy to form a staged bottom. When the sideways consolidation market formed by the falling market ends, the vast majority will choose to break through upwards, with a probability of about 90%.
Because of its morphological characteristics, the sideways consolidation formed by the convergence triangle is that the rising high point keeps moving down and the falling low point keeps rising. In most cases, this pattern will continue the original trend and choose the breakthrough direction, and only a quarter of the probability will evolve into a trend opposite to the original running trend.
The sideways consolidation formed in the rising market is the most complicated consolidation market, and its final direction choice has considerable uncertainty, which must be judged according to the characteristics of volume and price and combined with technical analysis methods.
If the sideways trend formed in the falling market lasts for 5 to 15 days, the upward breakthrough often has a certain upward force. However, if the sideways time is too long, it will not only affect the rebound momentum, but also easily lead to the final choice of sideways finishing.
Stock sideways characteristics
1. The sideways position not only appears at the head or bottom, but also sometimes appears in the case of rising and falling. At this time, we have said, try not to participate in the operation. Under normal circumstances, we need to wait, observe and find the right time.
2. Generally speaking, we think that this kind of sideways consolidation is the eve of change, and there is sideways consolidation after the stock price decline stage. The market believes that this situation is easy to form a staged bottom situation, but this consolidation is generally at the end. The stock has a high probability of making an upward breakthrough, which investors think is about 90%.
3. The general market thinks that under the condition that the rising high point keeps moving down and the falling low point keeps rising, it will continue the original trend to make a breakthrough, and the probability of becoming the opposite trend is only one quarter.
4. This is different from the second point. The second point is that the sideways arrangement formed by the rising time is the most complicated form with great uncertainty.
In fact, the above characteristics have already included the types of sideways we introduced, mainly including upward sorting, downward sorting, high sorting, low sideways and so on. These contents let us know more about the basic situation of this sideways, so what skills do we have to face these situations? Now we mainly introduce several kinds:
First, when the stock market is at a low level, we market investors should pay more attention to buying signals. At this time, the selling signal can generally be ignored properly. After all, when this market is over, it will usher in a rise and is already at a low level. At this time, the possibility of stock decline will be relatively small.
Second, when the stock market is in an intermediate shock, then we can sell it in time after the increase becomes larger, and buy it in time when there is an upward trend, because the rise and fall are unpredictable at this time.
Third, after talking about the low position and the middle position, it is a high-risk and high-yield situation. If you are not experienced in stock trading, try not to participate.
Fourth, the general stock has a certain law of rising, and investors will sell it when it rises to the right price and there is high pressure.