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Judging the nature of individual stock adjustment from the form

During the whole process of rising, the stock price of individual stocks often seldom show continuous rise, and there will always be some adjustments and declines during the period. Such adjustments and fallbacks are sometimes short-term adjustments, sometimes long-term adjustments, and sometimes even changes in trends. Therefore, when stock prices fall, how to accurately determine the downward trend and adjustment time of individual stocks has very important technical reference significance for future operations. If you make a wrong judgment and regard short-term adjustments as long-term declines, you will often miss big bull stocks; on the contrary, if you regard long-term trend changes as short-term declines, you will suffer heavy losses. Therefore, the following is an analysis of some of the most common falling technical patterns as a reference for investors to judge the trend.

One is that an individual stock has experienced a decline for one or two trading days after continuing to rise. You should not make a judgment. As long as the individual stock is still in the upward channel, you should continue to see more. This decline is only temporary during the rise. Adjustment; if the decline breaks the original track and trend, there may be a few months of adjustment, but in the medium and long term, it is still optimistic. If investors have the ability to operate on a band, they can make short positions, but most investors do not have this ability. Generally speaking, as long as the bull market is not over, they will hold them all the way; the third type of decline is a change in trend. This kind of decline continues to hit new lows, and the decline is often long-term. Once it is caught, it will be a long time. If this kind of decline occurs, investors need to leave the market early.

From a technical point of view, it seems that the second and third cases are quite similar, and it is difficult to distinguish them. When they can be distinguished, the stock price has reached an extremely low level and has already suffered heavy losses. Here, we suggest that we can judge from the magnitude of the decline. Generally speaking, it is difficult to judge at the highest price or on the day when the highest price occurs in the operation, so there should be no requirement to exit at the highest price in the first place. For those stocks that are optimistic in the medium and long term, the decline from the highest price is relatively small, and there is often a rebound action, that is, the technical form of multiple heads; while the weaker stocks have a larger decline, but The rebound strength is relatively small. Such stocks tend to rebound less than half of the decline in the rebound. This situation often means a change in the long-term trend. Therefore, for those stocks that have fallen sharply in the decline, but have less strength in the rebound, it is necessary to end early.

In fact, judging the stock price trend of individual stocks from the weekly line is very meaningful, because the daily line is very short and there will be quite a lot of fraud lines, which often makes it difficult for investors to accurately grasp the short-term trend. Generally speaking, those stocks that are adjusted in the mid-term will have a sideways box or ascending triangle technical pattern, but the trend-changing stocks will continue to bottom out.